Hermès overtakes LVMH for luxury’s top spot after weak sales spark sell-off

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Hermès Leapfrogged LVMH will become the most valuable luxury company in the world on Tuesday, the shares of the Louis Wittton owner were immersed on the results of the first quarter.

For a handful of darkness in which companies exchanged spots, shares in Paris several times Lvmh He decreased by 7.5%, sending the capital’s market capitalization to 245.4 billion euros.

The producer of Birquini and Kelly bag fell in Hermes, decreased by only 0.4%, gives 247 billion euros in market capitalization.

The luxurious industry is fighting for the bum of the epidemic, as the average class consumers are refreshing in the China economy, as the aggressive trading war of Donald Trump is complicated.

The results of the first quarter of LVMH on Monday showed that the sale of its main fashion and leather goods fell by 5%, with an expectation of 1% growth.

In contrast, Hermes“Ultra-rich customer base, carefully treated exclusivity and closely controlled production provided an opportunity to make the latest slowdown than its competitors.

However, other luxury shares were heavier than the Prada fell 4.2 percent Dip decreases by 1.4 percent. The shares of L’Oréal and Puig also fell after the results of LVMH, hinting at a wider deceleration of beauty.

Hermès has been steadily closed the market value gap through LVMH. His customers are ready months, sometimes expecting years to wait on the waiting list, buy hands on one of the group’s desired Kelly bags, which are sold at 8,000 euros. Hermès bags are often sold even higher prices in the sales market.

This uniqueness is reflected in the company’s assessment. The shares are trading on Hermès 50 times ahead, much higher multiple names of luxury.

“Hermens probably enjoy the highest pricing.

The Chief Executive and Chair of LVMH, the French billionaire Bernard Arno, built more than 80 brands, producing bags, jewelry and high-quality spirits.

Hermes, on the contrary, there is one brand left. In 2010, Arnk secretly collected the shares in the company, hoping to bring it to its stability, only will make its progress by the Hermes board.

The turbulent in a wider gorgeous industry comes when Trump started sweeping “Mutual” tariffs A step on dozens of trading partners, which shook markets and shocked US consumer confidence.

Earlier this month, the US President announced the charges of charges of goods imported from the EU. The interest rate was later reduced to 10 percent, up to 90 days on sharp tariffs. The tariffs between the United States and China are higher than 100%, raising fear due to the global fall.

The tariffs that were more aggressive than widespread were expected to lead analysts at Bernstein and HSC, they will provide their expectations in the second half of the year last week.

Citigroup Analyst Thomas Chauvet said that because of the economic uncertainty caused by Trump tariffs, “it is difficult to create a reliable scenario, during which the income in the LVMH and luxurious sphere has been improved in the total quarter.