Hermès has overtaken rival LVMH in market capitalisation, marking a significant shift in Europe’s luxury landscape. On Tuesday morning, Hermès reported a market value of €248.2 billion, narrowly surpassing LVMH’s €246.8 billion. The milestone crowns Hermès as the most valuable luxury brand in Europe and on France’s CAC 40 index—fifteen years after LVMH’s failed stealth attempt to acquire the maker of the iconic Birkin bag.
The development comes as LVMH contends with slowing demand in key markets such as China and the United States. The group’s shares declined following a disappointing first-quarter performance in 2024, amplifying investor concerns amid fears of an escalating trade war and weakening global sentiment.
In contrast, Hermès has maintained its resilience. Despite ongoing economic, geopolitical, and monetary uncertainty, the company reaffirmed its confidence in its medium-term outlook and sustained ambitions for revenue growth at constant exchange rates. The group attributed its stability to a highly integrated artisanal model, a balanced distribution strategy, creative product lines, and enduring customer loyalty.
For 2025, Hermès adopted the theme ‘Drawn to Craft’, underscoring its enduring focus on craftsmanship and creativity—from a saddle stitch to a pencil stroke, every product begins with the art of drawing. This thematic emphasis reflects the maison’s broader commitment to excellence, sustainability, and responsible growth.
Reinforcing its dedication to employees, Hermès will distribute over €500 million (~$533 million) in 2025 as profit-sharing for its 2024 performance—recognising the critical role of its workforce in driving success.
On the environmental front, Hermès has updated its climate strategy to strengthen supply chain sustainability and bolster resource conservation. The company remains aligned with its 2030 climate objectives, validated by the Science Based Targets initiative (SBTi), and continues decarbonisation efforts across operations and through energy efficiency measures. A key focus remains the reduction of Scope 3 emissions in collaboration with suppliers and partners across its value chain.
Executive Chairman Axel Dumas stated, “In a complex geopolitical and economic context, the house is strengthening its fundamentals more than ever: uncompromising quality, creativity at the heart of all development, and vertical integration—a guarantee of preserving unique savoir-faire. Despite a high comparison basis in the first quarter, the group achieved solid growth in sales, thanks to the trust of its customers and the commitment of the teams, whom I thank warmly.”
The contrasting performance of Hermès and LVMH highlights shifting investor sentiment in the luxury market. While Hermès benefits from a disciplined production model and a loyal ultra-affluent clientele, LVMH’s broader exposure to entry-level luxury—particularly in the beauty and spirits categories—is proving vulnerable in the current climate.
Jelena Sokolova, Senior Equity Analyst at Morningstar, commented, “Tuesday’s trading does reflect diverging performance and investor sentiment about the two companies.” She pointed out LVMH’s broader exposure to entry-level luxury as a potential liability amid global economic uncertainty.
Hermès also confirmed a price increase for its U.S. market from May 2025 to counterbalance tariffs imposed under President Donald Trump’s trade policies. “The price increase that we’re going to implement will be just for the U.S., since it’s aimed at offsetting the tariffs that only apply to the American market, so there won’t be price increases in the other regions,” said Eric du Halgouët, Hermès’ Executive Vice President for Finance, during the firm’s earnings call.
While Hermès capitalises on exclusivity and brand equity, analysts note that LVMH’s sheer size and diversified portfolio could offer resilience through economic headwinds. “LVMH is a wide-moat business with iconic brands and the scale to weather turbulence,” added Sokolova. “Its current valuation presents a compelling opportunity for long-term investors.”
Hermès continues to redefine luxury by uniting timeless elegance with a clear commitment to environmental responsibility. While advancing fashion through exceptional craftsmanship and creative innovation, the maison remains firmly focused on sustainable growth. From cutting Scope 3 emissions to strengthening supply chain resilience, Hermès proves that lasting style and environmental stewardship are not opposing forces, but essential pillars of the future of luxury.
Thomas, L. (2025, April 15). Hermès leapfrogs LVMH to become most valuable luxury company. Fortune. https://fortune.com/europe/2025/04/15/hermes-leapfrogs-lvmh-most-valuable-luxury-company/
Fibre2Fashion. (2025, April 15). French luxury brand Hermès’ revenue grows 9% YoY in Q1 2025. https://www.fibre2fashion.com/news/fashion-news/french-luxury-brand-hermes-revenue-grows-9-yoy-in-q1-2025-302081-newsdetails.htm
Business Today. (2025, April 16). Hermès surpasses LVMH as most valuable luxury brand after sales miss. https://www.businesstoday.in/lifestyle/fashion/story/hermes-surpasses-lvmh-as-most-valuable-luxury-brand-after-sales-miss-472186-2025-04-16
MSN. (2025). Hermès to hike U.S. prices for iconic bags and scarves in response to Trump tariffs. https://www.msn.com/en-ph/money/companies/herm%C3%A8s-to-hike-u-s-prices-for-iconic-bags-and-scarves-in-response-to-trump-tariffs/ar-AA1D5TNI
Reuters. (2025, April 15). LVMH shares slump after luxury giant’s Q1 sales miss forecast. https://www.reuters.com/business/retail-consumer/lvmh-shares-slump-after-luxury-giants-q1-sales-miss-forecast-2025-04-15/
