Hermes: Herms becomes leading stock market capitalisation of CAC 40, ahead of LVMH

Hermès store (China). Credits: Hermès. Paris - The French luxury group Hermès dethroned its rival, the French luxury giant LVMH, on Tuesday, becoming the leading stock market capitalisation at the close of the CAC 40, the benchmark index of the Paris stock exchange. It also became the most valuable luxury company in the world. Hermès' stock market valuation reached 248.60 billion euros, compared to 244.39 billion euros for LVMH, the world's number one in luxury, according to AFP calculations. This makes Hermès the leading stock market capitalisation in the CAC 40 and also the third largest stock market capitalisation in Europe, just behind the German software publisher SAP and the Danish pharmaceutical giant Novo Nordisk. The house also became the most valuable luxury company on the stock market in the world. This turnaround came after LVMH's stock market fall on Tuesday (-7.82 percent during the session), penalised by the market the day after the publication of its sales for the first quarter, which analysts considered disappointing. After a year hampered by weak demand in China, one of its main markets, the group faced geopolitical uncertainties, particularly in the US, where it was confronted with "a slight decline" in its turnover, according to the company, and an increase in customs duties. Since the beginning of January, the LVMH share price has fallen by more than 23 percent. The figures published on Monday "confirmed a difficult start for 2025", Jefferies analysts noted. Hermès, on the other hand, did not experience a crisis. Since January 1, it has gained almost 1.5 percent on the CAC 40, a notable progression in a more difficult context for the luxury sector as a whole after years of post-Covid euphoria. Hermès becomes leading stock market capitalisation of CAC 40, ahead of LVMH Despite its 2,355 euros per share, the Hermès share 'continues to attract', affirmed Andréa Tuéni, head of market activities at Saxo Banque France. This is proof of the 'confidence that markets show in the brand', which is famous throughout the world for its iconic Kelly and Birkin bags and its silk scarves. Hermès withstood the slowdown in global demand for luxury goods better than its competitors. The brand owes this to "its ultra-luxury positioning, with items purchased by an +ultra-rich+ clientele", compared to a "luxury positioning only on LVMH's side", Tuéni told AFP. As a result: "Hermès manages to publish record results, always increasing", he noted. The leather goods manufacturer published its turnover for the first quarter of 2025 on Thursday morning. "The French luxury landscape is completely fragmented", recalled Alexandre Baradez, head of market analysis at IG France. "The rise of an affluent middle class in China, which could access a globally fairly affordable luxury" had driven luxury groups such as Kering, owner of the Gucci brand, and LVMH, which owns Christian Dior and Louis Vuitton, upwards. The rivalry dates back to the 2010s, when LVMH surprisingly acquired a stake in Hermès, prompting members of the family to unite in the H51 holding company to counter the appetites of billionaire Bernard Arnault. Hermès operates with a logic of scarcity of items. "The group bases itself on a high level of creativity and craftsmanship with reasonable price increases", noted HSBC analysts. This positioning in an even higher luxury sector gives the group a better capacity to withstand economic crises, and the "phases where China has suffered a lot", when LVMH and Kering took a hit, being heavily exposed, Baradez pointed out. Questions remain, however, as to the consequences on the group of the trade war initiated by Donald Trump, with unprecedented salvos of customs duties against his trading partners since the 1930s. "The ultra-rich", Hermès's target clientele, "have quite a strong exposure to the financial markets" which have experienced very strong turbulence in recent weeks, warned Baradez. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com