It’s 2025, and Hermès, the infamous French luxury company known for its famous Birkin and Kelly handbags, has officially become the most valuable luxury brand in the world. This means it’s now worth more than LVMH, which owns other big brands like Louis Vuitton, Givenchy, Dior, Tiffany & Co., and Sephora. People are calling this a significant moment in the fashion world.
According to a CNN report, Hermes is now worth over €248 billion (approximately $264 billion), surpassing LVMH after its stock dropped. LVMH had a rough start in 2025, while its competitors, such as Hermès, continued to perform well.
Despite economic challenges, Hermès continues to grow. In 2024, they made over €15 billion in sales, a 15% increase from the prior year. Sales in Japan increased by 23%, and the company also saw a rise in customers in Europe and the Americas.
One primary reason for their success is how they manage their products. Hermès is very strict about how much it produces and distributes. Their bags, such as the infamous Birkin, are notoriously difficult to obtain. This makes them feel exclusive since it’s in constant high demand, and people are willing to pay a lot for them. One expert, Luca Solca, explained, “They’re also difficult to get, which adds to the cachet and the brand’s desirability.” Hermès doesn’t just make bags; they also sell clothes, watches, jewelry, and home items. They’ve slowly expanded, but without losing their special image. Their focus on tradition and quality has enabled them to retain loyal customers worldwide.
Even with the new tariffs (extra taxes) on European products coming from the U.S., Hermès is staying strong. Starting in May 2025, they plan to raise prices in the U.S. to compensate for these changes. Still, they don’t think it will significantly harm their business, as most of their customers are wealthy and still value what Hermès offers.
Axel Dumas, the executive chairman of Hermès, said, “The house is staying the course, attached more than ever to its fundamental values of quality, creativity, and savoir-faire.” He means that Hermès will continue to focus on producing high-quality products and being creative, regardless of the challenges that arise.
Experts believe that Hermès could surpass Louis Vuitton in total sales within the next few years. If this prediction comes true, it would mark a significant shift in the luxury fashion industry, as Louis Vuitton has long held the top spot as the world’s leading luxury brand. Such a change would reflect Hermès’ rising popularity and strong brand loyalty, especially to its clientele, and signal evolving consumer preferences and market dynamics within the high-end fashion world.
For now, Hermès is celebrating its spot at the top. By staying focused on quality, tradition, and exclusivity, it still works. While other fashion companies chase trends, Hermès sticks authentically to itself and does what it does best, paying off in a big way against its competitors.
