Bloomberg has reported that Hermès International will be joining Euro Stoxx 50, one of Europe’s main equity benchmarks. This will put Hermès in the spotlight of major investors.
The luxury leather goods maker will replace Universal Music Group N.V. in the Euro Stoxx 50 according to a statement issued from index operator Qontigo on Wednesday. Changes will be in effect on December 20.
Hermès, while famous for its Birkin bags, Kelly bags, and scarves, didn’t even make France’s benchmark CAC 40 Index until June 2018. The increase in demand for luxury goods has helped their bottom line and has elevated them to the frontline for major investors. Hermès also had one of the fastest rebounds of any luxury brand after the pandemic, further emphasizing the brand’s demand and power.
This year, Hermès shares are up 90 percent so far as of Wednesday closing. Hermès’ market value is now 199 billion dollars.