Hermès overtook the LVMH for the first place of luxury after weak sales sales

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On Tuesday, Hermès crossed the LVMH to become the most valuable luxury company in the world after the stock of the owner Louis Tsuton collapsed at the back of the disappointing results of the first quarter.

In the bruising in the morning for the luxury sector in which the company has changed the spots several times in Paris, listed Lvmh It decreased by 7.5 percent, sending market capitalization to 245.4 billion euros.

The stock in Hermès, the manufacturer Birkin and Kelly Bags, decreased by only 0.4 percent, giving it a market capitalization of 247 billion euros.

The luxurious industry fought after the pandemy boom because the middle -class consumers are kept in the costs, and the Chinese economy disappears, the factors that are now deteriorating the aggressive trade war of Donald Trump.

The results of the first quarter of the LVMH, released on the end of Monday, showed that sales in their department of key and leather goods decreased by 5 percent, which significantly lacked analysts’ growth per 1 percent.

On the contrary, Germes“The ultra-account client base, carefully calibrated exclusivity and rigidly controlled production, allowed it to deduce recent slowing than its competitors.

However, on Tuesday, other luxury stocks were stronger, and sell decreased by 4.2 percent and Paning It is reduced by 1.4 percent. The stock in L’Oréal and Puig also fell after the LVMH results hint at a broader beauty slowing.

Hermès invariably closes the gap of the LVMH market value. His customers are willing to sit on the waiting list for several years, sometimes to get hands on one of the cherished glasses sold for 8,000 euros. Hermès bags often get even higher resale prices.

This exclusivity is reflected in the company’s assessment. Stock in Hermès Trade with 50 times ahead, much more than any other name in luxury.

“Hermés may enjoy the highest pricing force … Out of its incomparable brand desirability,” said Carol Maggie, Barclays analyst, who added that Hermes will not need to increase prices as much as competitors to compensate for the impact of tariffs on Trump.

LVMH Chief Executive and Chairman, French billionaire Bernard Arnard, created a group in one that covers more than 80 brands, producing handbags, jewelry and high -end perfume.

On the contrary, Hermes remained the only group of the brand. In 2010, Arnault secretly gained a stake in the company, hoping to bring it to its stable, only for its achievements to abandon the Hermès Council.

Upset in a wide luxury industry comes when Trump has launched a sweeping “Mutual” tariffs There are dozens of trading partners, a step that fell to the markets and shaken confidence in US consumers.

Earlier this month, the US president announced 20 percent of goods imported from the EU. Later, this rate was reduced to 10 percent as part of a 90-day pause for the steep tariffs. Tariffs between the US and China are much higher than 100 percent, causing fears from the global recession.

Last week, tariffs that were more aggressive than expected were headed by Bernstein and HSBC analysts to cut their expectations for luxury recovery in the second half of the year.

Citigroup Analyst Thomas Chaseta said he was “difficult to build a trusting scenario” from the economic uncertainty, in which the income in LVMH and the luxury sector in general improved in the nearby neighborhoods.