Hermes Overtakes L’Oreal to Become France’s Second Most-Valuable Firm

  • Valuation soars amid strong demand for handbags, scarves
  • Shares hit fresh record as Hermes defies luxury downturn

The Hermes luxury boutique on Rue de Sevres in Paris.

Photographer: Cyril Marcilhacy/Bloomberg
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Hermes International SCA’s value overtook that of L’Oreal for the first time on Friday, 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.