Hermès Reaches Record Market Value During The Pandemic

As happened in the wake of the 2008 crisis, when its sales had suddenly risen by 26%, Hermès arrived yesterday at the highest market value reached in its history: eighty billion euros.

The French brand is not the only one to have seen its numbers grow: the value of the LVMH group has reached 203 billion euros and that of Kering has reached 67 billion, with an increase of 12.5%.  But if the big groups have returned to the same levels they were before the pandemic, Hermès broke its own record without reporting any damage from the pandemic.

According to the brand’s financial report for the first quarter of 2020, sales had fallen by only 7.7% (about half of the LVMH group) and revenue was around EUR 1.5 billion.

According to most analysts, the brand’s performance was kept stable by the famous Birkin bags – so valuable that they were considered a safer investment than gold during the recent period of economic turbulence.  According to the brand’s report, another industry that kept revenue afloat during the crisis was jewelry.  However, some analysts have pointed out that relying too much on a few sales channels could pose a risk in the future.  During the pandemic,  Hermès also donated twenty million euros to the Assistance Publique – Hôpitaux de Paris as well as thirty tons of disinfectant gel and 31,000 protective masks.