Hermes is a French luxury brand known for its iconic handbags, silk scarves, and equestrian-inspired accessories. The brand has been around for over 180 years and has built a reputation for quality, craftsmanship, and exclusivity.
But who owns Hermes? In this article, we’ll explore the ownership structure of Hermes and how it has evolved over time.
History of Hermes
Hermes was founded in 1837 by Thierry Hermes as a harness workshop in Paris. The company initially catered to the equestrian market but soon expanded into other luxury goods such as leather bags and accessories. Over the years, Hermes gained a loyal following among the European elite and royalty.
The Hermes Family
For many years, Hermes was solely owned by the Hermes family. The company remained in family hands for six generations until 1984 when it went public on the Paris Stock Exchange. Even after going public, the family retained control of the company through their ownership of shares.
The LVMH Acquisition Attempt
In 2010, luxury conglomerate LVMH (Louis Vuitton Moet Hennessy) made an attempt to acquire a controlling stake in Hermes. LVMH is one of the largest luxury goods companies in the world with brands such as Louis Vuitton, Dior, Givenchy, and Fendi under its umbrella.
The Hermes family strongly opposed the acquisition and accused LVMH of unethical behavior. They alleged that LVMH had secretly accumulated shares in Hermes through complex financial instruments known as equity swaps. The family filed a lawsuit against LVMH which was eventually settled in 2014.
Current Ownership Structure
Today, the majority of shares in Hermes are still owned by members of the founding family. According to Forbes, at least eight members of the family are billionaires due to their ownership of Hermes shares. The family retains control of the company through their ownership of shares with multiple voting rights.
In 2020, Hermes reported revenue of $7.18 billion and a net profit of $1.38 billion. The company has continued to expand its product offerings and retail presence around the world while maintaining its commitment to quality and craftsmanship.
Conclusion
In conclusion, Hermes is owned primarily by members of the founding family who have retained control of the company for over 180 years. While there have been attempts by other companies to acquire Hermes, the family has remained committed to maintaining their independence and preserving the brand’s heritage. Today, Hermes is one of the most iconic luxury brands in the world, known for its timeless designs and exceptional quality.