Discover

The house that beat LVMH: how Hermès quietly took the luxury crown

LVMH, the company behind Louis Vuitton, Givenchy, Dom Pérignon, Tiffany & Co., and TAG Heuer, had a market capitalization of 244.1 billion euros. Meanwhile, Hermès soared to an impressive 248.1 billion euros.

Por: Alejandro Carrillo April 20, 2025

Hermès officially surpassed LVMH in market value, becoming the most valuable luxury brand in the world / Photo via Hermès

As of last Tuesday morning, Hermès officially surpassed LVMH in market value, becoming the most valuable luxury brand in the world.

While LVMH—parent to Louis Vuitton, Givenchy, Dom Pérignon, Tiffany & Co., and TAG Heuer—stood at a market capitalization of 244.1 billion euros, Hermès climbed to an impressive 248.1 billion euros.

Known for its iconic Birkin bags and an array of high-end goods, including fashion, accessories, footwear, and fine jewelry, Hermès now holds the crown in an industry defined by prestige and heritage.

The shift in the luxury landscape followed LVMH’s Q1 2025 financial report, which revealed a less-than-stellar performance. The conglomerate generated 20.3 billion euros in revenue during the first quarter, reflecting a 3% organic decrease compared to the previous year. This shortfall—below analysts’ expectations—triggered a noticeable drop in LVMH‘s stock price.

More specifically, LVMH’s most profitable fashion and leather goods segment recorded a 5% organic decline in revenue, down to 10.1 billion euros. Meanwhile, the wine and spirits division reported a 9% drop, bringing in 1.3 billion euros. Other segments such as perfumes, cosmetics, and selective retailing also saw a modest 1% decline. Watches and jewelry were the only categories that managed to maintain stability.

The reign of elegance

Compounding the dip in sales were ongoing global economic uncertainties, especially in China, a key market where luxury consumption has recently slowed. LVMH also cited geopolitical tensions and rising trade tariffs in the United States as contributing factors. Despite positive numbers in Europe, Japan showed weaker performance compared to last year’s China-fueled spike in spending, while the rest of Asia showed a similar trend to 2024.

In stark contrast, Hermès appears untouched by this economic turbulence. While LVMH’s shares have fallen by over 23% since January, Hermès shares have actually risen by 1.5%—a modest but notable increase given the broader luxury slowdown. The company’s resilience and consistent growth continue to defy market trends, reinforcing its reputation for excellence and stability.

Europe’s richest dynasty

The rivalry between Hermès and LVMH is long-standing. In 2010, Bernard Arnault, often dubbed “the wolf in cashmere,” attempted a quiet takeover of Hermès by acquiring a 17% stake without warning. However, the Hermès family fought back and successfully forced Arnault to divest, securing their independence. Today, led by Axel Dumas, the Hermès dynasty not only remains sovereign but has emerged as Europe’s wealthiest family, with an estimated fortune of $171 billion by the end of 2024.

Ver esta publicación en Instagram

Una publicación compartida por Hermès (@hermes)

Despite current headwinds, LVMH expressed optimism in its financial report, stating it remains “both vigilant and confident” amid a volatile geopolitical and economic climate.

Key information

Who is now the most valuable luxury company in the world? Hermès has overtaken LVMH in market capitalization.
What caused the drop in LVMH’s stock price? Lower-than-expected revenue in Q1 2025 led to the decline.
How has Hermès performed in 2025 so far? Hermès has seen a 1.5% increase in its share price since January.
What historic event intensified the rivalry between Hermès and LVMH? Bernard Arnault’s 2010 attempt to take over Hermès sparked the conflict.