Hermès Valuation Surpasses €200 Billion — Retail Bum

Hermès has become the eighth-most valuable company on the pan-European Stoxx 600 index, with its valuation surpassing €200 billion.

The luxury brand is now second only to LVMH, the most valuable luxury company in the world, which is currently valued at €423 billion. According to Bloomberg, the company’s new valuation is now higher than the combined value of several major French companies, including Airbus, Renault, Vivendi, Carrefour, Societe Generale and Orange.

Hermès’ new valuation follows continued demand for its priced leather goods, including its Birkin bags, which sell for €10,000 even in the current economic environment where consumers are spending their discretionary. It has particularly benefitted from increased demand in China, where the lifting of lockdown restrictions has spurred demand for luxury products, as well as the return of American tourists in Europe, who are shopping more thanks to the strong U.S. dollar.

Hermès is opening a new manufacturing facility in Louviers, Normandy, to cater to the increased demand. Still, demand for its products will likely continue to surpass supply. The company today operates nearly 300 stores, which is about the same as a decade ago, while overall sales have more than doubled during the period.

So far this year, the company’s stock is up 27.09%.

Originally published at https://retailbum.com on April 10, 2023.