April 16, 2025 | Business – France

Hermès overtakes LVMH to become France’s most valuable luxury brand in 2025, thanks to its exclusive business model and high global demand. Find out what led to this historic shift.

In a historic shift for the luxury fashion industry, Hermès has overtaken LVMH in market value, becoming the most valuable publicly traded company in France. This comes over a decade after a dramatic takeover attempt that once threatened Hermès’ independence.

Key Highlights:

• Hermès’ market cap hit €243.65 billion, slightly surpassing LVMH’s €243.44 billion
• LVMH sees slowing sales in key markets like China and the US
• Hermès’ exclusivity-driven strategy continues to pay off

Hermès Overtakes LVMH After Years of Resilience

According to Bloomberg, Hermès’ valuation climbed to €243.65 billion, narrowly edging out luxury conglomerate LVMH (Moët Hennessy Louis Vuitton) at €243.44 billion. This marks a pivotal moment in the long-standing rivalry between the two fashion giants.

Hermès’ rise to the top of the CAC 40 stock index is particularly significant given the company’s fierce resistance against a takeover by LVMH CEO Bernard Arnault back in 2010. Arnault had discreetly amassed a large stake in Hermès, triggering fears of a hostile takeover. However, the Hermès family united to maintain control and ultimately forced LVMH to divest its shares in 2014.

Why Hermès is Winning the Luxury Race

Unlike many of its peers, Hermès has focused on exclusivity rather than expansion. Known for its iconic Birkin and Kelly handbags, Hermès intentionally limits supply, creating scarcity and maintaining sky-high demand. Some of its handbags retail for over €10,000, with waiting lists stretching for months, further boosting resale values.

While LVMH owns high-profile brands like Louis Vuitton, Dior, and Tiffany & Co., its broad portfolio includes lower-margin businesses such as Sephora, which experts say contributes to a “conglomerate discount” that affects overall valuation.

Market Trends: LVMH Faces Headwinds

LVMH has recently been hit by declining demand in the US and Chinese markets, causing investor concern. The luxury behemoth posted lower-than-expected Q1 results for 2024, especially in its fashion and leather goods segment, leading to a slip in its share price. Fears of a potential trade war have further dampened sentiment.

In contrast, Hermès continues to attract the ultra-wealthy by focusing on craftsmanship, limited production, and elite branding — a model that has held strong even in uncertain economic times.

Financial Snapshot: Hermès vs LVMH (2024)

Family Wealth & Leadership

While Bernard Arnault remains one of the richest individuals globally, the Hermès family, led by Axel Dumas, now holds the title of Europe’s wealthiest family. Their collective net worth is estimated at $171 billion as of late 2024.

Hermès is expected to announce its Q1 2025 results this Thursday, which could further solidify its new position at the top of the luxury sector.

Conclusion

Hermès’ steady climb and laser focus on luxury, scarcity, and brand integrity have allowed it to surpass a titan like LVMH — proving that sometimes, slow and selective wins the race. With global demand shifting and consumers becoming more discerning, Hermès’ exclusive strategy might just be the future of high-end retail.

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