Hermés overtakes LVMH as the most valuable company in the French leading index

Hermés overtakes LVMH as the most valuable company in the French leading index

The French luxury goods group LVMH generated sales of €20.3 billion in the first quarter of the current year. Adjusted for acquisition and currency effects, this represents a decline of 3 percent compared to the first quarter of the previous year.

The US reported a slight decline (-3 percent) despite strong performance in the Fashion & Leather Goods and Watches & Jewelry segments. Sales in Japan also declined (-1 percent) compared to the same quarter of the previous year, which had benefited from strong growth in Chinese consumer spending. In the rest of Asia, sales declined by as much as 11 percent. In Europe, however, LVMH recorded a small increase of 2 percent.

The Wines & Spirits division recorded a decline in sales in the first quarter of 2025 (-9% yoy). Fashion & Leather Goods, which declined slightly in the first quarter of 2025, also declined (-5% yoy) compared to Q1 2024, which was characterized by strong purchasing growth in Japan. Sales of Perfumes & Cosmetics were also 1 percent lower in the first three months compared to the same period last year.

Sales in the Watches & Jewelry division in Q1 2025 were at the same level as in the first quarter of 2024. However, LVMH's overall results fell short of analysts' expectations of 2 percent growth.

The company released its first-quarter results after the market closed on April 14. The following day, LVMH shares were among the biggest losers on the stock market, falling more than 8 percent to €485, its lowest level since the end of 2020. Today, April 17, the share price is even lower at €482.

This means that LVMH has at least temporarily lost its title as the most valuable company in the French leading index CAC40 and is ranked behind competitor Hermès.

The company announced its quarterly figures today. These show a significant increase of 8.5 percent in revenue in the first three months of 2025, amounting to €4.1 billion (adjusted for acquisition and currency effects). All regions recorded growth: Europe excluding France (+13.1 percent), France (+14.2 percent), Asia (+5.1 percent), and the Americas (+13.3 percent).

Hermès generated higher revenues in almost all product categories in the first quarter of the current year than in the corresponding period of the previous year. The only exception was the watch segment, which saw a 10 percent decline.

Overall, Hermès' sales in Q1 2025 were below analysts' expectations, so the share price also fell, albeit only slightly, and unlike the LVMH share, it has so far been able to stay above its annual low.

This was also due to the fact that the figures only slightly disappointed expectations. Analysts at Deutsche Bank described this as merely a slight deviation from consensus estimates.

Hermès' market capitalization is currently around €250 billion, slightly ahead of LVMH's market capitalization of around €243 billion.