In a major power shift, Hermès now holds a $278.1B valuation—surpassing LVMH after the conglomerate posted a rare sales miss. LVMH’s Q1 revenue dropped 3% to $22.98B, missing analyst expectations. The steepest declines came from China (-11%) and the U.S. (-3%), with demand softening across beauty, cognac, and even fashion pillars like Dior.
The weak earnings sent LVMH stock plunging 8%, wiping out billions in value and stoking concerns about the luxury sector’s short-term future. To add more context: LVMH once tried to acquire Hermès, gradually building a secret stake in the company before being forced to unwind it in 2017. Fast forward to now—Hermès not only resisted, it’s overtaken its biggest rival.