Hermès has recently claimed the title of the most valuable luxury company in the world, surpassing the long-standing leader LVMH. Since the beginning of 2025, Hermès has reported record-breaking earnings, solidifying its position at the top of the luxury market.
LVMH, a giant conglomerate led by Bernard Arnault, manages numerous iconic brands such as Dior, Louis Vuitton, Givenchy, Moët & Chandon, Tiffany & Co., and Guerlain. Despite its impressive revenues, LVMH has experienced a decline in market capitalization, with its shares dropping 7% in the last quarter, bringing its valuation to approximately 246 billion euros. Conversely, Hermès has seen its market value rise, reaching around 247 billion euros, thus overtaking its competitor.
The key to Hermès’ success lies in its strategic focus on exclusivity. Unlike LVMH, which has adopted a marketing approach aimed at increasing sales volume—thus exposing itself more to the mass luxury segment—Hermès maintains a limited production model. The French maison emphasizes rarity and high-quality craftsmanship, attracting affluent clients willing to pay thousands of euros for exclusive, limited-edition items. Iconic bags like Birkin and Kelly have become symbols of status, appreciated not only as luxury accessories but also as valuable investments.
Financially, Hermès has experienced a 7.2% increase in revenue over the past year, reaching 4.13 billion euros in the first quarter of 2025. While this growth is slightly lower than the 18% in the previous quarter, it remains impressive, especially compared to LVMH’s 3% decline. However, recent global trade tensions, such as tariffs imposed during the Trump administration, have introduced uncertainty, prompting both companies to consider raising prices amid predicted sales decreases of around 2%.
Hermès overtakes LVMH as the world’s most valuable luxury brand in 2025
