Hermès overtakes LVMH to be crowned the world’s most valuable luxury company

The luxury world has just witnessed a change of thrones. Hermès, that maison that never runs, but always arrives first, has just officially become the most valuable luxury brand on the planet. While LVMH is staggering with a 7.8% stock market fall after disappointing results in its first quarter, Hermès floats unperturbed… and ascends to Olympus.

With a market capitalisation of 276.3 billion dollars, Hermès outstrips – albeit narrowly – its eternal rival LVMH Möet Hennessy Louis Vuitton SE, which lags behind with 274.5 billion. This is no small feat: Hermès thus becomes the third most valuable company in Europe, behind only SAP and Novo Nordisk, according to Bloomberg data.

This move is not only a financial milestone; it is also a lesson in strategic elegance. In an increasingly unpredictable macroeconomic environment, Hermès proves that quiet exclusivity and timeless craftsmanship remain stronger than the empire of marketing and mass luxury consumption. ‘Hermès is seen as more resilient in uncertain contexts, and that’s exactly what we’re seeing now,’ notes Morningstar analyst Jelena Sokolova for Bloomberg.

The history between Hermès and LVMH is far from a peaceful narrative. Back in 2010, Bernard Arnault – aka ‘the wolf in cashmere’ – tried to take control of Hermès, raising his stake to 17% without warning. The Hermès family not only resisted, but managed to reverse the move, forcing Arnault to sell his shares and reasserting its independence with lethal elegance.

Today, while Arnault ranks fifth in Bloomberg’s billionaires index, the Hermès family, led by Axel Dumas, ranks as the richest in Europe, with an estimated wealth of $171 billion by the end of 2024.

And it’s no fluke. During the third quarter of last year, Hermès recorded 11.3% growth in sales, and in 2024 the maison continued its upward flight with an overall increase of 13%. When the rest falter, Hermès levitates.

Stella McCartney buys LVMH stake and redefines sustainable luxury.