Is Hermes a Publicly Traded Company?

If you’re a fan of high-end luxury goods, then you’ve probably heard of Hermes. This French fashion house is known for its iconic handbags, scarves, and other accessories that are loved by fashionistas all over the world.

But if you’re an investor, you may be wondering whether Hermes is a publicly traded company. Let’s take a closer look.

What is a Publicly Traded Company?

Before we dive into whether Hermes is publicly traded or not, let’s first define what it means to be a publicly traded company. A publicly traded company is one that has issued shares of stock to the public through an initial public offering (IPO). These shares can be bought and sold by anyone on the stock market.

Is Hermes Publicly Traded?

The short answer is no, Hermes is not a publicly traded company. In fact, Hermes has never been publicly traded since it was founded in 1837. Instead, the company has remained privately owned by the same family for six generations.

Why Isn’t Hermes Publicly Traded?

There are many reasons why a company may choose to remain privately owned instead of going public. For one thing, being publicly traded comes with a lot of regulatory requirements and scrutiny from investors. Private companies have more flexibility in terms of decision-making and can focus on long-term growth instead of short-term gains.

In the case of Hermes, the family that owns the company has expressed a desire to maintain control over its operations and ensure that its values and traditions are upheld. Going public could potentially dilute their control over the company and put it at risk of being taken over by outside investors.

What Does This Mean for Investors?

Since Hermes is not publicly traded, individual investors cannot buy shares in the company on the stock market. However, there are still ways to invest in Hermes indirectly. For example, you could invest in a mutual fund or exchange-traded fund (ETF) that holds shares in luxury goods companies, including Hermes.

Another option is to invest in one of Hermes’ competitors that is publicly traded, such as LVMH or Kering. These companies operate in the same industry and offer similar products, so their stock prices may be influenced by trends in the luxury goods market.

The Bottom Line

Hermes is not a publicly traded company and has no plans to go public anytime soon. While this means that individual investors cannot buy shares in the company directly, there are still ways to invest in the luxury goods industry and potentially benefit from Hermes’ success.