European markets retreat after an encouraging start to the week, penalized by growing tensions between the USA and China over semiconductors. Against this chaotic backdrop, the luxury goods sector registered a major upheaval : Hermès briefly overtook LVMH in market capitalization, becoming France’s most valuable company.
The luxury goods sector continues to suffer the consequences of the global economic slowdown, but not all players are affected in the same way…
Hermès takes the lead on the CAC 40
It’s a landmark event for the Paris Bourse : Hermès has overtaken LVMH in terms of market valuation, a first in the recent history of the CAC 40. The Parisian saddler reached a market capitalization of 248.6 billion euros, compared with 244.4 billion for Bernard Arnault’s group. This transfer of power illustrates the divergent trajectories of two luxury giants, faced with a more complex economic environment.
LVMH saw its shares heavily punished after the publication of quarterly results below expectations. The group posted a 3% drop in sales for the first quarter of 2025, whereas analysts were expecting a 2% increase. The share price fell by 7.82% on the day, due in particular to the slowdown in demand in the United States and China, the company’s two main markets.
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