Hermès’ market capitalization soared to $276.3 billion, surpassing LVMH’s $274.5 billion.
Hermès has been synonymous with the super-rich’s ultimate status symbol, the Birkin bag. That was until 2025, when the French luxury brand took a new identity: the most valuable luxury company in the world.
Hermès has officially become the world’s most valuable luxury company, after surpassing the market value of rival Möet Hennessy Louis Vuitton SE—commonly known as LVMH—on Tuesday, April 15. According to Wall Street Journal, the Birkin maker’s market capitalization soared to US$276.3 billion, dethroning that of LVMH, which ended the day with US$274.5 billion.
LVMH, which owns fashion houses Louis Vuitton, Dior, and Loewe; jewelry brand Tiffany & Co.; and beauty retailer Sephora, saw its sales plummet as demand for beauty products and cognac declined in the US. Shoppers in China have likewise curbed purchases of high-end goods.
The group reported that its sales fell by 3% year-on-year in Q1 2025, mainly because of the revenue decline in its Fashion & Leather Goods and Wines & Spirits business groups. Consequently, its lower-than-expected revenue report has pushed down the group’s shares by 7.8% in the same quarter.
Related story: Dior’s 2025 fall collection brings autumnal style to springtime Kyoto
Related story: LVMH’s Bernard Arnault is still world’s richest man, 19-year-old Livia Voigt is youngest new billionaire
LVMH was the world leader in luxury since 2021, as luxury stocks have been boosted by hopes that the industry would boom post-COVID-19 pandemic. However, the group has lost more than 45% of its value since its record close in 2023.
Nevertheless, the luxury conglomerate maintains a positive outlook for the rest of the year. “In a disrupted geopolitical and economic environment, LVMH remains both vigilant and confident at the start of the year. The Group remains focused on the development of its brands, driven by a sustained policy of innovation and investment as well as by a constant quest for quality in products, their desirability, and their selective distribution,” the conglomerate wrote on Tuesday’s report.
“LVMH will rely on talent and motivation of its teams, the diversity of its businesses and the good geographic balance of its revenue to further strengthen its global leadership position in luxury goods in 2025,” it added.
Hermès, on the other hand, is sticking to a 6-7% increase each year despite its tight hold on the production of its half-a-million-peso Birkin handbags. Its recent feat of becoming the most valuable luxury company in the world places the brand in the third spot on the list of Europe’s largest listed companies. It falls behind software brand SAP SE and weight-loss drug supplier Novo Nordisk A/S.
As to why LVMH is struggling while Hermès is not, The Economist explains that it is likely because the latter remains focused only on the ultra-rich. Unlike Hermès, Dior has begun selling products, specifically the ones in its beauty line, at less hefty prices to cater to middle-class shoppers. Huge price increase, the outlet said, has likewise irked many shoppers. The Dior Lady Bag, for one, came with a €5,900 in 2024, when it was just priced €3,200 in 2016.
Related story: Heads up, ladies! Louis Vuitton unveils luxury cosmetics La Beauté for the modern woman
Related story: Hermès F/W25 elevates the horse girl aesthetic
Meanwhile, Hermès has been thriving as an ultra-premium luxury label through an approach known as the “Hermès formula.” It maintains the brand’s exclusivity through a combination of limited production, meticulous craftsmanship, and deliberate emphasis on VIP treatment.
And while many speculate that the limited production of its bags is a strategy to keep customers hungry and pump up demand, Hermès heir and artistic director Pierre-Alexis Dumas explained in a viral interview last January that it is anything but.
He said that the release of their bags depends on how intricately they are made and the number of artisans working on them. And like all things timeless, crafting a Hermès bag takes time—a lesson all luxury brands can learn from today’s no. 1.
Related story: Hermès artistic director explains why their bags are ‘costly, not expensive,’ and why the wait is so long
Related story: Prada buys Versace for $1.4 billion, uniting Italy’s biggest brands in one house
