👝 Stat of the Day: Hermès Overtakes LVMH

That feeling when you become bigger than the rival that tried to buy you: 😏. Hermès International’s valuation reached ~$281 billion as of market close yesterday, surpassing the ~$276 billion of LVMH—owner of Christian Dior, Tiffany & Co., Givenchy, and others—to make it the most valuable company on France’s benchmark CAC40 index.

The criss-cross comes after LVMH fell as much as 8.4% on the day, following disappointing Q1 results due to slowing demand and threats of an escalating trade war.

Big picture: Hermès’ supply-constrained biz model targeting the wealthiest buyers has allowed it to weather a downturn in the luxury goods market, with demand for its Birkin and Kelly bags far outstripping supply. These bags can sell for ~$11,000 in Paris, with much higher prices seen on the resale market.

On the other hand, LVMH may be suffering from what some analysts call a conglomerate discount, with its Sephora brand seeing lower margins compared to its Louis Vuitton brand.

🤔 Did You Know? A “condor” score in golf—which signals someone shot four-under par, AKA hit a hole-in-one on a par-5 or two on a par-6—has only been achieved six times in recorded history. (Unsurprisingly, none belong to Kim Jong Un.)

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