Hermès — The World’s Most Valuable Luxury Brand @ 1/6 of the Revenues of LVMH

-Hermès valuation, by market capitalization, is on par with LVMH Moët Hennessy Louis Vuitton, with both hovering around $243 billion euros. Hermès revenue is 1/6th that of LVMH — $15.2 billion compared to $85 billion in 2024.

-One year ago, the Hermès valuation was half that of LVMH.

-Hermès is planning to fully offset the impact of Trump's 10% universal tariffs, starting May 1.

-Higher prices just drives desire even higher, Veblen effect. Hermès CEO Axel Dumas: “We'll increase [prices], and our American customers will understand and will remain loyal.”

-Hermès margins similar to software/tech, with gross margins of ~71%.

https://tracydecicco.substack.com/p/hermes-the-worlds-most-valuable-luxury