LVMH has relinquished its position as the world’s most valuable luxury brand, with its market capitalization falling below that of rival Hermes on Tuesday.
As of mid-morning Tuesday, LVMH, which boasts prestigious labels including Louis Vuitton, Dom Perignon, Givenchy, Tiffany & Co., and TAG Heuer, reported a market capitalization of approximately 244.1 billion euros. This was less than Hermes, which now stands at a market value of 248.1 billion euros.
With its current market valuation, Hermes has emerged as the leading luxury brand worldwide, renowned for its iconic Birkin handbags and a wide array of luxury products, including apparel, scarves, footwear, jewelry, and belts.
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This shift in market leadership follows LVMH’s Monday disclosure of its first-quarter revenue figures, which showed a total revenue of 20.3 billion euros, reflecting a 3% organic decline compared to the previous year.
The disappointing results, which fell short of analysts’ forecasts, led to a decline in LVMH’s share price.
LVMH’s Tuesday financial report indicated a 5% organic drop in revenue for its fashion and leather goods segment, amounting to 10.1 billion euros for the first quarter. Additionally, revenue from its wine and spirits division fell by 9% to 1.3 billion euros, while the watches and jewelry segment remained stable. The perfumes and cosmetics and selective retailing sectors both also reported a 1% year-over-year decline.
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“Europe once again achieved growth on a constant consolidation scope and currency basis,” LVMH stated in its press release. “The United States experienced a slight decline, despite positive performance in Fashion & Leather Goods as well as Watches & Jewelry. Japan saw downturns compared to the first quarter of 2024, which had benefited from a surge in Chinese consumer spending. The broader Asia region exhibited trends similar to those in 2024.”
LVMH has expressed that it remains “both vigilant and confident at the start of the year” despite a “disrupted” geopolitical and economic landscape.
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