French fashion house Hermes International SCA has overtaken LVMH Moët Hennessy Louis Vuitton SE to claim the title of the world’s most valuable luxury group, with a market capitalization of €230 billion ($242 billion) as of April 14, 2025, per Bloomberg data.
The milestone, reported Monday, reflects Hermes’ 18% share surge this year, driven by demand for its Birkin and Kelly handbags, which command up to $200,000 on resale markets, and a 12% sales jump to €13.5 billion in 2024, fueled by Asia’s wealthy elite.
LVMH, home to Louis Vuitton and Dior, trailed at €210 billion after a 5% stock dip, hit by China’s economic slowdown and a 3% drop in champagne sales, per company filings. Hermes’ edge lies in its exclusivity—producing only 10,000 Birkin bags annually versus LVMH’s mass-market approach, analysts say. “Hermes thrives on scarcity,” noted HSBC’s Carole Dupont, citing its 90% gross margin, tops in the sector.
LVMH, with 75 brands, faces pressure to streamline, though its €80 billion revenue dwarfs Hermes’ €15 billion. The shift, tracked by 60% of global investors per Reuters, signals a luxury market pivot toward craftsmanship, with Hermes eyeing a €20 billion sales goal by 2030.