LVMH: why Hermès gives in to LVMH its crown of first capitalization of the Paris Stock Exchange

(BFM Bourse) – LVMH was returned to the Sellier -Maroquerier. Consequently, with 232 billion euros in market capitalization against 219.6 billion euros for Hermès, this Monday, August 4. Therefore, A passage of power which is explained by opposite dynamics on the season of results.

Dislined from his throne last April by Hermès, LVMH takes revenge. Similarly, The owner of the Louis Vuitton. Moreover, Celine, Dior or Loro Piana brands has once again become the first capitalization of the Paris Stock Exchange. Meanwhile,

This Monday, LVMH’s market capitalization reached 232.3 billion euros at the end of the morning against 219 billion euros for Hermès, according to Euronext data.

The rocking took place last week. Furthermore, caused by a season of the results which turned out to be very difficult for Hermès while, in contrast, LVMH resisted, lvmh: why hermès gives lvmh in terms of stock market reactions.

The group chaired and led by Bernard Arnault, certainly, delivered degraded half -yearly accounts, in absolute terms. Furthermore, The current operating profit fell by 15%, the net profit of 22%. Consequently, Above all. Nevertheless, its flagship division of fashion and leather goods accused a fall in its income of 9% in data comparable in the second quarter, after 5% in the first.

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Glows of hope for LVMH

But the market and the analysts have perceived several elements likely to put this publication or even reassuring this publication. Nevertheless,

First of all. Moreover, the “big” of the deterioration of fashion activity and leather goods is explained by the fact that Asian tourists (Chinese in particular) spent much less in Japan, where group income plunged 28% in the second lvmh: why hermès gives lvmh quarter. Consequently,

On the first part of 2024. the weakness of the Yen had prompted Asian travelers to move in the Japanese archipelago to buy luxury goods, especially in leather goods. With the ascent of the yen “we observe a reversal of what had happened last year (in Japan. editor’s note), which is particularly true for Chinese customers,” said financial director, Cécile Cabanis.

This impact is supposed to be temporary and not structural. Especially since Chinese domestic demand has improved in the second quarter.

Then, apart from fashion and leather goods, all the other divisions of the company have exceeded expectations. LVMH, also preserved its profitability, with a current operating profit in the first half of 9 billion euros, above the consensus (8.87 billion euros).

“With the exception of fashion. leather goods turnover, almost everything else seems better than expected, these results are certainly not excellent, but lvmh: why hermès gives lvmh they are not catastrophic either,” summarized Luca Solca, from Bernstein.

Ultimately, Deutsche Bank saw “glimmer of hope”, anticipating an improvement in sales from the third quarter.

“Investors were waiting for an opportunity to return to this title. the conference calls on a number of factors likely to encourage them, including a ‘tangible’ resumption in China, market share gains for key brands and a potential for structural efficiency, as well as a rigorous cost management,” said the German bank.

The LVMH title took almost 4% in the wake of its results from the first half.

Hermès posted an opposite dynamic. Admittedly, the Merier-Maroquerier has gone to grow 9% in the second quarter in comparable data, online figure with analysts’ expectations.

Lvmh: why hermès gives lvmh

A stock market history threatened at Hermès?

But, according to UBS, investors wanted more. According to the bank, operators hoped for a growth rate that would lvmh: why hermès gives lvmh come closer to 10% in comparable data.

“It is not really surprising that the impressive results of Hermès in the first semester are partly overshadowed by a resumption of quarterly sales less marked than what investors hope. ” wrote Jefferies last week.

The Hermès action dropped by 4.5% after the publication of its results and the same day LVMH won 1.3%. “On European mega-spaces such as Novo Nordisk, LVMH or Hermès, there may be significant portfolio reallocation effects. Disappointment on Novo Nordisk (which dropped 23% on a session after a warning on results). Hermès were able to create buyers on LVMH”, explained last week an analyst at BFM Bourse.

The next day. Hermès lost more than 5%, weighted by a degradation of UBS which abandoned his advice to the purchase to move on to “neutral”.

“In an uncertain context for luxury products. Hermès has always been a good refuge, lvmh: why hermès gives lvmh given its resilient growth profile (with a demand in leather goods which exceeds the supply)”, writes the Swiss bank.

“However. given its now much larger size (around 16 billion euros according to our estimates, multiplied by more than two compared to 2019) and the first signs of weakening the brand’s perception among high income customers (…). which we had reported as a risk at the beginning of the year, we fear that the nature of its stock market history is changing,” continues the bank.

“This. combined with the risk weighing on the profits of 2026 (slowdown in growth in comparable data, exchange effects and drop in prices), in our views any increase in increase,” she concluded.

Note that. this Monday, Bernstein, on the contrary confirmed his advice to “outperformance” on the title, in a post-results analysis of the first half.

“We do not think that the publication lvmh: why hermès gives lvmh of the first half of 2025 marks a change in the fundamentals of Hermès. ” write his analysts. Additionally, “Investors often cite the high valuation of Hermès as the main risk linked to the investment in this action. With a drop of more than 10% of valuations during last week. this risk now seems more and more behind us rather than before us,” they note.

Julien Marion – © 2025 BFM Bourse