Hermès is ahead of LVMH in the highest place of luxury after a poor sale sales sale

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Hermès jumped over LVMH to become the most valuable luxury company in the world on Tuesday, after the owner’s actions Louis Vuitton fell on the disappointing results of the first quarter.

In a bruise morning for the luxury sector, in which companies exchanged places several times, actions on the Paris list LVMH It fell by 7.5 percent, which caused the capitalization of the group market to EUR 245.4 billion.

Hermès shares, the producer of Birkin and Kelly bag, fell by only 0.4 percent, which gives a market capitalization of EUR 247 billion.

The luxury industry struggled after the Pandemia boom, when middle class consumers limit Chinese expenses and economies, factors that are currently intensified by the aggressive trade war of Donald Trump.

LVMH results in the first quarter, published late on Monday, showed that sales in a key fashion and leather ward dropped by 5 percent, much low from the expectations of analysts in the amount of 1 percent.

Whereas, Hermes“Ultra-uncompromised customer base, carefully calibrated exclusive and strictly controlled production enabled it to survive a recent slowdown better than its rivals.

However, on Tuesday, other luxurious wrestling remained harder, and Prada fell by 4.2 percent and Dry Falling by 1.4 percent. The shares in L’Oréal and Puig also fell after LVMH’s results pointed to a wider slowdown in beauty.

Hermès constantly closes the gap in the market value with LVMH. His clients are prepared to sit on the waiting list for months, sometimes years to get one of the desired Kelly bags in the group that sell for EUR 8,000. Hermès bags often bring even higher prices on the resale market.

This exclusivity is reflected in the company’s valuation. Actions in Hermès Trade Trade 50 times ahead of profit, a much higher multiple than any other name in luxury.

“Hermés probably enjoys the highest price force … Due to the unmatched desire of the brand,” said Carole Madjo, an analyst at Barclays, who added that Hermés would not have to increase the prices of such a lot of rivals to balance the impact of Trump’s tariffs on his profit margins.

The general director and chairman of LVMH, French billionaire Bernard Arnault, built a group into one of over 80 marks, producing bags, jewelry and high -class ghosts.

On the contrary, Hermes remained one brand group. In 2010, Arnault secretly gathered participation in the company, in the hope that he would introduce her to his stable, only so that his progress would be rejected by the board of Hermès.

The confusion in a wider luxury industry appears when Trump started sweeping “Mutual” tariffs In dozens of trade partners, the movement, which scanned markets and shocked American trust in consumers.

At the beginning of this month, the US President announced 20 percent fees for goods imported from the EU. This rate was later reduced to 10 percent as part of a 90-day break in the most important tariffs. Tariffs between the USA and China much above 100 percent, bringing concerns about the global recession.

Tariffs, which were more aggressive than they were widely expected, led analysts in Bernstein and HSBC last week to reduce their expectations regarding the luxurious recovery in the second half of the year.

Citigroup analyst Thomas Chauvet said that because of the economic uncertainty generated by Trump’s tariff “it is difficult to build a reliable scenario” in which revenues in LVMH and in the luxury sector generally improved in the upcoming quarters.