Hermes overtakes LVMH in market cap to become most valuable luxury company

LVMH ceded its title as the world’s most valuable luxury company on Tuesday, as its market capitalization dropped below rival Hermes.The market capitalization of LVMH, known for brands like Louis Vuitton, Dom Perignon, Givenchy, Tiffany & Co. and TAG Heuer, hovered around 244.1 billion euros as of mid-morning Tuesday, lower than Hermes and its market cap of 248.1 billion euros.At their current market caps, Hermes became the most valuable luxury company in the world. It is known for Birkin handbags and other luxury merchandise such as clothing, scarves, shoes, jewelry and belts.GET FOX BUSINESS ON THE GO BY CLICKING HEREThe change in positions between the two luxury giants came after LMVH on Monday released revenue data for the first quarter of the year. The company generated 20.3 billion euros in total revenue in the first quarter, marking a 3% organic decrease year over year.The results, which did not meet analyst expectations, prompted a drop in LVMH shares.In its Tuesday financial release, LVMH said its fashion and leather goods segment saw an organic 5% year-over-year drop in revenue, hitting 10.1 billion euros in the first quarter. Its wine and spirits, at 1.3 billion euros, reported a 9% decrease in revenue, while watches and jewelry remained largely unchanged, and two other segments – perfumes and cosmetics and selective retailing – both experienced a 1% organic decline from 2024’s first quarter. THE HERMES BIRKIN BAG ALLURE AND WHY THE PRICE TAG IS SO HIGH"Europe once again achieved growth on a constant consolidation scope and currency basis," LVMH said in its press release. "The United States saw a slight decline, despite a good performance in Fashion & Leather Goods and in Watches & Jewelry. Japan was down with respect to the first quarter of 2024, which had been boosted by strong growth in Chinese consumer spending in the country. The rest of Asia saw trends comparable to 2024." The luxury giant said it "remains both vigilant and confident at the start of the year" amid a "disrupted" geopolitical and economic environment.CLICK HERE TO READ MORE ON FOX BUSINESSWeiter zum vollständigen Artikel bei FOX Business Weiter zum vollständigen Artikel bei FOX Business