HERMES International SCA’s value overtook that of L’Oreal for the first time on Friday (Feb 9), making the Birkin bag maker the second most-valued company in the French blue-chip CAC 40 index.

Hermes’s strong revenue report powered the luxury company’s stock to record highs on the same day that the beauty firm’s shares slithered after a weaker-than-expected update.

With its market capitalisation reaching 230 billion euros (S$334 billion), Hermes assumed the second position in the French benchmark, behind luxury rival LVMH Moet Hennessy Louis Vuitton SE, which is still a long way ahead at more than 400 billion euros. L’Oreal’s market value fell to 225 billion euros.

Hermes is defying a broader slump in the high-end goods market as its exposure to the ultra-rich shields it from the worst of the lull. The results were “rock solid”, according to Citigroup analyst Thomas Chauvet.

Friday’s report pushed the stock up as much as 6.3 per cent to a record high.

French peer L’Oreal is not faring as well. Headwinds came from its performance in North Asia due to a difficult travel retail market, putting pressure on its premium unit and pulling its shares down almost 8 per cent. BLOOMBERG

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