Are you curious about who owns Hermes, the French luxury brand known for its iconic Birkin bags and silk scarves? In this article, we’ll explore the stock ownership of Hermes and provide you with some interesting insights.
Background on Hermes
Before diving into stock ownership, let’s quickly touch upon the history of Hermes. The company was founded in 1837 by Thierry Hermes as a harness workshop in Paris.
Over time, it expanded into a luxury goods manufacturer and retailer with a focus on leather goods, fashion accessories, perfumes, and ready-to-wear clothing. Today, Hermes is one of the world’s most prestigious luxury brands with a loyal customer base and a global presence.
Hermes’ Ownership Structure
Hermes has an interesting ownership structure that sets it apart from many other publicly traded companies. The majority of the company’s shares are held by members of the Dumas family who are descendants of Thierry Hermes. As of 2021, the family controls approximately 70% of the company’s capital through various holding companies.
This means that while Hermes is technically a publicly traded company (it is listed on the Euronext Paris stock exchange), its ownership is tightly controlled by a select group of individuals rather than spread out among many shareholders.
Who Owns the Rest?
While the Dumas family holds the majority of shares in Hermes, there are other shareholders as well. According to public filings, institutional investors own around 20% of the company’s shares while individual investors own roughly 10%.
Some notable institutional investors include:
- LVMH: French luxury conglomerate LVMH (Louis Vuitton Moet Hennessy) owns a 23.16% stake in Hermes as of 2021.
- BlackRock: The world’s largest asset manager, BlackRock, owns a 5.42% stake in Hermes as of 2021.
- Vanguard: American investment management company Vanguard owns a 2.77% stake in Hermes as of 2021.
It’s worth noting that LVMH’s stake in Hermes has been a topic of controversy over the years. In 2010, LVMH surprised the market by announcing that it had secretly accumulated a significant stake in Hermes without informing the company or the public. This led to a long legal battle between LVMH and Hermes, with the latter accusing the former of insider trading and seeking damages.
Conclusion
So there you have it – the majority of shares in Hermes are held by members of the Dumas family, but there are also institutional and individual investors who own smaller stakes. It’s interesting to see how tightly controlled the ownership structure of this iconic luxury brand is, and how even large institutional investors like LVMH only hold relatively small stakes.
If you’re interested in investing in Hermes yourself, keep in mind that its stock is pricey (as you might expect from a luxury brand). As of July 2021, one share of Hermes trades for over €1,000 on the Euronext Paris exchange. But for those who can afford it, owning a piece of this iconic brand might be worth it.