Hermès has overtaken LVMH Moët Hennessy Louis Vuitton as the world’s most valuable luxury brand, marking a significant shift in the high-end fashion industry. This change follows LVMH’s disappointing first-quarter earnings report for 2025, which led to a substantial drop in its market capitalization.
LVMH reported a 3% decline in organic revenue for Q1 2025, totaling €20.3 billion, falling short of analyst expectations. The company’s fashion and leather goods division, which includes brands like Louis Vuitton and Dior, experienced a 5% decrease in sales. Additionally, the wines and spirits segment saw a 9% drop, attributed to weaker demand in key markets such as the U.S. and China.
As a result of these underwhelming figures, LVMH’s shares fell by 7%, reducing its market capitalization to €244 billion. In contrast, Hermès, known for its exclusive products like the Birkin bag, saw its market value rise to €248 billion, surpassing LVMH.
Hermès’ success is attributed to its consistent growth and strong performance across various markets. In the first quarter of 2025, Hermès reported a 7.2% increase in sales, reaching €4.1 billion. The company also announced plans to raise prices in the U.S. starting May 2025 to counteract potential impacts from new tariffs imposed by the U.S. government.
