Now Reading: Hermes Surpasses LVMH to Become World’s Most Valuable Luxury Group
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Hermes Surpasses LVMH to Become World’s Most Valuable Luxury Group
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.
