Why Hermès Is Growing While LVMH And Gucci Decline

French luxury company, Hermès, has managed to achieve the ultimate goal of luxury: keep demand high and supply low. In its Q3 2024 earnings, the company posted double digit sales and revenue growth of 11% and 14% respectively. Competitors like LVMH and Gucci owner, Kering, were in the negative. Though the company is small, comprised only of one brand, it keeps up with the conglomerates, recording a higher price-to-earnings ratio than most of its rivals and a $233 billion market cap on October 24, 2024. Chapters: 0:00 Introduction 1:49 Chapter 1. A bet on exclusivity 4:12 Chapter 2. Beating competition 6:46 Chapter 3. Risks ahead Produced and edited by: Natalie Rice Animation by: Jason Reginato, Christina Locopo Edited by: Kevin Heinz Senior Managing Producer: Tala Hadavi Additional footage: Hermès, Getty Images, AP Photo, Reuters Additional sources: FactSet, Hermès