Hermès Leapfrogs LVMH to become the most luxurious companies in Europe after the owner of Louis Vuitton reported on dilapidated results

Hermes outperformed a luxurious rival LVMH after Bernard Arnol’s company, which is run by a packed company, was informed to 2025 with a decrease in sales.

The market value of Hermes LVMH was held on Tuesday morning around it 210 million eurosBirkin Bag Maker is the most luxurious company in Europe, and on the CAC40 index in France.

As of 11.30 in the morning, London time, the market value of Hermes amounted to 248.2 billion euros, while LVMH reached 246.8 billion euros.

LVMH shares fell to 8 % after the opening of the market in Paris, as the company reported a 3 % decrease in Sales in the first quarter on monday. Given its large size and presence through skin goods, lives, and more, the French bloc is widely seen as a luxurious sector bell.

The company has also been affected by periodic demand for high -end goods in recent years, as economic pressures for shoppers have prompted rethinking their luxury purchases. LVMH 2024 sales decreased by 2 % to 84.7 billion euros, while net profit sank by 17 % on an annual basis.

The company is now facing a market that has become tougher due to the fluctuations related to tariffs. CFO Cicile Cabanis from LVMH confirmed that the effect of American definitions Be limited Currently, Luka Solka, a Bernstein analyst, a luxury analyst at Bernstein SG, left in a note.

Analysts are generally concerned about a tariff for the appetite of consumers of bags and luxury shoes over time.

Currently, the silver lining is that “the great investor fear of the United States slows down for luxury, not the case in the first quarter of its life with the United States slowly slowing due to Sephora and Koniac” instead of the most profitable LVMH parts of costumes or leather goods, Deutsche Banks led by Adam Cochrane wrote on Tuesday’s note.

LVMH has a small presence in manufacturing in America, which can rise in the highest customs tariff. It seems that arnault is looking This idea is positivealso.

While LVMH finds her feet in the constantly changing geopolitical and economic climate, Hermes has remained safe until now. I managed to attract buyers at a time when some of the most prominent players in the sector, including KERING, were struggling.

Last year, Hermes witnessed revenues that jump 15 % to 15.2 billion euros.

CEO Axel Dumas The strong performance said The descent reached the unique Hermes model and its craft. For example, despite the lack of marketing department, the company did not face a problem in attracting shoppers ready to spend thousands of euros on one purchase.

“Some people want to do a bit like Hermes, but this does not work at the end of the day,” Dumas said during the call in February.

Hermes flexibility will be tested amid a wave of American tariffs, which threaten the wealth of the entire luxury sector. However, Jefferies described the company as a “relative safe haven” in the memorandum of last week, adding that they expect the results of the first quarter of Hermes on Thursday to “confirm the flexibility of the US Supreme brand’s flexibility”.

Dumas is clear that if the definitions flow to costs, they will make prices on Hermès products instead of transferring production to the United States

He said: “We are very associated with our production where it is.” According to Bloomberg.

The former CEO rejected the LVMH comparisons, which tried to buy once Perkin makerBecause he argued that companies sell different products.

For Hermes, the scarcity of her bags and permanent demand have made their goods somewhat. But this is not true for the most varied family of LVMH brands.

However, the Gulf, which is narrowed in the market value of the two French companies, is two rails, making it difficult not to compare its performance in 2025.

Although Hermes may have his distinguished approach and the rule of loyal customers in his favor, the LVMH scale and size can carry it through uncertainty in the luxury market.

“LVMH is a broad company with some of the largest and most powerful brands in this field, and you should persevere in a better crisis than most of them,” said Gilina Sokolova, an arrow analyst in Morningsar. “We consider stocks less than their value-a long-term opportunity for investors in the long run.”

This story was originally shown on Fortune.com