Hermes have exceeded the LVMH market capitalization, becoming the world's largest luxury brand. This turn took place after the LVMH reported the disappointing first quarter, due to its reduced sales in the United States and China, Reuters reports.
LVMH's shares dropped by 7%, reaching € 246 billion, while Hermes capitalization amounted to € 247 billion. Analysts say that Hermes's limited production policy and a steady layer of multimillionaires have helped the company overcome the crisis, unlike the Medium Segment of LVMH.
The main luxury brands, Louis Vuitton, Gucci, Cartier and Prada, have been depreciated in recent months due to the decline in sales and new tariff policy initiated by Donald Trump. Analysts predict that the sector of luxury goods can record the longest decline in the last 20 years.
