Hermès overtakes Louis Vuitton as luxury's most valuable brand, by $100 million

Hermès has overtaken Louis Vuitton to become the world's most valuable luxury brand for the first time, according to Interbrand's Best Global Brands 2026 report. The French leather goods house climbed past its long-dominant rival as the two names swapped places in the overall global ranking.

Hermès added 10.6 percent to reach $45.2 billion in brand value, taking No. 15 and a place in the global top 20. Louis Vuitton slipped 6.9 percent to $45.1 billion and fell to No. 16, just below it. Only $100 million now separates the two houses.

Why Hermès rose

Interbrand puts Hermès' rise down to its craftsmanship, controlled scarcity and events such as Hermès in the Making. The maison makes leather goods, fashion accessories, ready-to-wear and fragrances, and the report treats its restraint as a commercial strength.

Family ownership helps that restraint. As we reported in our guide to who owns Hermès, the family controls about two-thirds of the share capital and over 76% of voting rights through the H51 holding company, which carries a 20-year lock-up.

Gonzalo Brujó, Interbrand's global chief executive, said in a statement: "For years, strong brands could assume their reputation would carry them through difficult periods." He added: "But that's no longer enough."

The brands pulling ahead, Brujó said, use brand as a business tool rather than simply an asset. "They're creating new sources of demand, building stronger relationships with customers and finding new ways to grow," he said.

Louis Vuitton's decline came despite heavy investment in partnerships and category expansion, the report says. The house has also been reshaping its creative leadership, and we covered its appointment of Tiffany's Hector Muelas as chief brand creative officer.

Chanel and the jewellers rise

Chanel grew 8.1 percent to $32.9 billion and ranks No. 24. Interbrand describes a period of creative renewal under artistic director Matthieu Blazy, who has brought fresh energy to the house while keeping its signature codes intact.

The house, founded by Coco Chanel in 1910, is owned entirely by Alain and Gérard Wertheimer. Our pricing analysis found the Medium Classic Flap up 95% in six years to $11,300, part of a push toward Hermès-tier exclusivity.

Jewellers were among the sector's strongest performers. Cartier, the Richemont-owned French house, rose 9.4 percent to $12.2 billion and ranks No. 69. LVMH's Tiffany & Co., established in 1837, grew 6.2 percent to $8.1 billion at No. 91.

Interbrand credits both jewellers with investing in creativity, cultural partnerships and elevated retail experiences. Their gains contrast with several major fashion houses, which moved in the opposite direction in the same ranking.

Gucci slides furthest

Gucci posted the sector's steepest decline: its brand value fell 30.7 percent to $8.1 billion. The Kering-owned label, founded in Florence in 1921, dropped 24 places to No. 93. Interbrand points to weakened desirability and soft performance in key markets.

That came despite efforts to reset its creative direction. Gucci's third-quarter revenue fell 4 percent as reported, and our Kering coverage recorded a 6% fall at constant exchange rates that missed forecasts, with jewellery up 11%.

Dior fell 5 percent to $8.9 billion and ranks No. 85. Prada slid 15.1 percent to $7.6 billion and dropped 10 places to No. 96. Interbrand concludes that luxury is entering a period of polarisation.

Brands with clear meaning, coherence and authenticity are pulling ahead, Interbrand says, while those relying on legacy, scale and momentum find heritage no longer guarantees growth. The report states: "Luxury is no longer about what a product does, but what a brand means."

The rankings arrive amid reduced consumer spending and shifting shopping behaviour, which Interbrand says has made the category demanding. Gucci also led luxury's decliners last year, when heritage names including Louis Vuitton, Hermès and Chanel held top spots while losing value against 2024.

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Image: Hermès