Hermes is a well-known luxury brand that specializes in high-end fashion, leather goods, and accessories. The company was established in 1837 by Thierry Hermes and has since become one of the most prestigious fashion houses in the world.
Is Hermes a Public Company?
Many people wonder whether Hermes is a public company or not. The answer is no, Hermes is not a public company.
Instead, it is a privately held company that is owned by the Hermes family. This means that the company’s shares are not traded on any stock exchange and the general public cannot invest in it.
The Ownership Structure of Hermes
The ownership structure of Hermes is unique because it has been passed down through generations of the Hermes family. Currently, the majority shareholder of the company is Axel Dumas, who serves as the CEO and represents the sixth generation of the family to run the business.
Aside from Axel Dumas, there are other members of the Hermes family who own shares in the company as well. In fact, it’s estimated that approximately 80% of the company’s shares are still held by members of the Hermes family.
The Advantages and Disadvantages of Being a Private Company
Being a private company has its advantages and disadvantages. One advantage is that private companies have more control over their operations since they don’t have to answer to shareholders who may have conflicting interests.
Another advantage is that private companies can take a longer-term view when it comes to their investments and business strategies since they do not have to cater to short-term demands from investors.
However, being a private company also has its disadvantages. One major disadvantage is that private companies may find it more difficult to raise capital compared to public companies since they cannot sell shares on stock exchanges.
Another disadvantage is that private companies may not be able to attract as much attention from investors or analysts compared to public companies which can limit their exposure and growth opportunities.
In Conclusion
In summary, Hermes is not a public company but rather a privately held company that is majority-owned by the Hermes family. While being a private company has its advantages and disadvantages, it has not stopped Hermes from becoming one of the most luxurious and sought-after fashion brands in the world.