Hermès confirms heir no longer holds multibillion-euro stake
Hermès International SCA believes the family member, Nicolas Puech, has not held shares in the Birkin bag maker for some time, according to Executive Chairman Axel Dumas. His statement adds a new twist to a prolonged legal dispute — now further complicated by the recent death of Puech's former wealth manager.
'I've known for a long time that Nicolas Puech no longer holds his shares,' Dumas told reporters on Wednesday during an earnings call. He made his most detailed public comment on the matter and explained, 'That's why we started legal proceedings.' He also stated that he doesn't believe the company can recover the shares.
The uncertainty around Puech's stake in Hermès has remained one of the most persistent questions following one of France's most high-profile corporate battles. Over a decade ago, Bernard Arnault — founder of luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE — revealed he had discreetly acquired a stake in Hermès. In response, the founding Hermès family united and successfully resisted the takeover attempt.
The status of Puech's shares was never publicly clarified, even after Arnault's 2014 agreement to begin unwinding his position. The mystery deepened in 2023, when Puech accused his former wealth adviser, Eric Freymond, of mismanaging his assets. Freymond died in Switzerland last week.
Puech, a fifth-generation heir, had been involved in a legal dispute with Freymond in Geneva over the management of his wealth, largely tied to approximately 6 million Hermès shares. The brand remains one of the most valuable luxury houses globally.
Dumas described Freymond's death as 'tragic' and 'sad.'
Lawyers for both Puech and Freymond were not immediately available for comment.
The Hermès family, which includes over 100 members, is among Europe's wealthiest dynasties. If Puech, who resides in Switzerland, were still holding his stake, he would be the single largest shareholder in the 1837-founded house known for its handbags and silk scarves.
Dumas himself is a sixth-generation descendant of the company's founder. His late uncle, Jean-Louis Dumas, who once served as CEO of Hermès, was also Puech's cousin.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
2 days ago
- Fashion Network
Hermès grows across all global markets, but sees slower pace in France and China
In the first half of the year, Hermès reported solid growth across all global markets, reflecting what CEO Axel Dumas called 'the strength of the Hermès model.' With few competitors matching such performance, the French luxury house posted sales of €8 billion, up 7% (+8% at constant exchange rates) as of June 30, 2025. Growth was driven by a stronger second quarter and balanced performance across geographic regions. Europe, excluding France, Japan, the Americas, and the Middle East, saw double-digit growth during the first half of the year and the second quarter. France and China were the only markets to post single-digit increases. Asia-Pacific excluding Japan showed the weakest performance, with first-half sales up 1.5% (+3% at constant exchange rates), totaling €3.5 billion (+0.1% reported; +5.2% at constant exchange rates in Q2). Hermès remains confident in China's medium-term outlook, though the recovery remains uncertain. 'Spending continues to grow, but demand is not visibly increasing. The dynamism seen a few years ago has not yet returned,' said Dumas during a teleconference with analysts. 'For some time now, due to well-identified reasons — the real estate crisis, stock market instability, and global uncertainty — we've seen fewer Chinese customers, many of whom are saving rather than spending. Personally, I don't see any definite improvement,' he added, describing the current situation in China as 'wait-and-see.' Still, he noted Hermès was 'very fortunate to have grown in China last year and to have achieved growth in the first half.' In France, first-half sales rose 8.7% to €740 million, with Q2 sales up 4.1%. The domestic market remains solid. 'Apart from minor cyclical effects, I don't see any break in the trend in France, which is one of the countries doing well,' said Dumas. Chief financial officer Eric du Halgouët added, 'In Europe and France, our stores are mainly visited by customers from the United States and the Middle East. We noted a slight temporary dip in France in June, but Middle Eastern customers have returned after recent periods of tension.' In contrast to its competitors, Hermès has performed especially well in markets like Japan. Sales there rose 17.6% to €815 million in the first half (+16% at constant exchange rates), following an already strong +22% in the same period in 2024. Second-quarter growth reached +17.4% (+14.7% at constant exchange rates). 'Japan has a long history with Hermès. It was our first customer in the 1980s. We share a very strong and special relationship,' emphasized Dumas. Thanks to strong local demand, Hermès is less dependent on tourist-driven traffic in Japan. Unlike other brands that shifted focus away from Japan in favor of other Asian markets, Hermès continued to invest locally. Today, it benefits from a well-established boutique network and resilient local teams. 'Our customers are quite loyal — to the stores, and often to their salespeople,' said Dumas. A similar model is seen in South Korea, where Hermès enjoys strong loyalty and ongoing growth. In the Americas, sales rose 11.7% in the first half (+9.5% reported) to €1.4 billion, and by 12.3% in Q2 (+6.5% reported), driven by double-digit growth in the United States. 'This is due to the Group's strong performance and the quality of our products and teams,' said Dumas, who also pointed to instability in the region. 'The U.S. remains volatile, with major differences from week to week and region to region. But it is one of the countries where all sectors beyond leather goods also perform very well.' Commenting on the 15% customs duty applied to U.S. sales, Dumas said the company was awaiting details. 'General U.S. duties were 4.7% at the start of the year, with an additional 10% applied in April, bringing the total to 15%. If the new 15% figure includes what's already in place, there may be no need to raise prices further.' Hermès had already increased U.S. prices by 10% in May. He added: 'The falling dollar is just as important — if not more — than tariffs in terms of impact.' In the 'Other' region — largely the Middle East — sales rose 16.3% in H1 (+17.2% at constant exchange rates) and 15.7% in Q2 (+20.4% at constant exchange rates), underscoring continued demand for luxury goods in Eastern markets.
Fashion Network
2 days ago
- Fashion Network
Hermès grows across all global markets, but sees slower pace in France and China
In the first half of the year, Hermès reported solid growth across all global markets, reflecting what CEO Axel Dumas called 'the strength of the Hermès model.' With few competitors matching such performance, the French luxury house posted sales of €8 billion, up 7% (+8% at constant exchange rates) as of June 30, 2025. Growth was driven by a stronger second quarter and balanced performance across geographic regions. Europe, excluding France, Japan, the Americas, and the Middle East, saw double-digit growth during the first half of the year and the second quarter. France and China were the only markets to post single-digit increases. Asia-Pacific excluding Japan showed the weakest performance, with first-half sales up 1.5% (+3% at constant exchange rates), totaling €3.5 billion (+0.1% reported; +5.2% at constant exchange rates in Q2). Hermès remains confident in China's medium-term outlook, though the recovery remains uncertain. 'Spending continues to grow, but demand is not visibly increasing. The dynamism seen a few years ago has not yet returned,' said Dumas during a teleconference with analysts. 'For some time now, due to well-identified reasons — the real estate crisis, stock market instability, and global uncertainty — we've seen fewer Chinese customers, many of whom are saving rather than spending. Personally, I don't see any definite improvement,' he added, describing the current situation in China as 'wait-and-see.' Still, he noted Hermès was 'very fortunate to have grown in China last year and to have achieved growth in the first half.' In France, first-half sales rose 8.7% to €740 million, with Q2 sales up 4.1%. The domestic market remains solid. 'Apart from minor cyclical effects, I don't see any break in the trend in France, which is one of the countries doing well,' said Dumas. Chief financial officer Eric du Halgouët added, 'In Europe and France, our stores are mainly visited by customers from the United States and the Middle East. We noted a slight temporary dip in France in June, but Middle Eastern customers have returned after recent periods of tension.' In contrast to its competitors, Hermès has performed especially well in markets like Japan. Sales there rose 17.6% to €815 million in the first half (+16% at constant exchange rates), following an already strong +22% in the same period in 2024. Second-quarter growth reached +17.4% (+14.7% at constant exchange rates). 'Japan has a long history with Hermès. It was our first customer in the 1980s. We share a very strong and special relationship,' emphasized Dumas. Thanks to strong local demand, Hermès is less dependent on tourist-driven traffic in Japan. Unlike other brands that shifted focus away from Japan in favor of other Asian markets, Hermès continued to invest locally. Today, it benefits from a well-established boutique network and resilient local teams. 'Our customers are quite loyal — to the stores, and often to their salespeople,' said Dumas. A similar model is seen in South Korea, where Hermès enjoys strong loyalty and ongoing growth. In the Americas, sales rose 11.7% in the first half (+9.5% reported) to €1.4 billion, and by 12.3% in Q2 (+6.5% reported), driven by double-digit growth in the United States. 'This is due to the Group's strong performance and the quality of our products and teams,' said Dumas, who also pointed to instability in the region. 'The U.S. remains volatile, with major differences from week to week and region to region. But it is one of the countries where all sectors beyond leather goods also perform very well.' Commenting on the 15% customs duty applied to U.S. sales, Dumas said the company was awaiting details. 'General U.S. duties were 4.7% at the start of the year, with an additional 10% applied in April, bringing the total to 15%. If the new 15% figure includes what's already in place, there may be no need to raise prices further.' Hermès had already increased U.S. prices by 10% in May. He added: 'The falling dollar is just as important — if not more — than tariffs in terms of impact.' In the 'Other' region — largely the Middle East — sales rose 16.3% in H1 (+17.2% at constant exchange rates) and 15.7% in Q2 (+20.4% at constant exchange rates), underscoring continued demand for luxury goods in Eastern markets.
Fashion Network
2 days ago
- Fashion Network
Hermès grows across all global markets, but sees slower pace in France and China
In the first half of the year, Hermès reported solid growth across all global markets, reflecting what CEO Axel Dumas called 'the strength of the Hermès model.' With few competitors matching such performance, the French luxury house posted sales of €8 billion, up 7% (+8% at constant exchange rates) as of June 30, 2025. Growth was driven by a stronger second quarter and balanced performance across geographic regions. Europe, excluding France, Japan, the Americas, and the Middle East, saw double-digit growth during the first half of the year and the second quarter. France and China were the only markets to post single-digit increases. Asia-Pacific excluding Japan showed the weakest performance, with first-half sales up 1.5% (+3% at constant exchange rates), totaling €3.5 billion (+0.1% reported; +5.2% at constant exchange rates in Q2). Hermès remains confident in China's medium-term outlook, though the recovery remains uncertain. 'Spending continues to grow, but demand is not visibly increasing. The dynamism seen a few years ago has not yet returned,' said Dumas during a teleconference with analysts. 'For some time now, due to well-identified reasons — the real estate crisis, stock market instability, and global uncertainty — we've seen fewer Chinese customers, many of whom are saving rather than spending. Personally, I don't see any definite improvement,' he added, describing the current situation in China as 'wait-and-see.' Still, he noted Hermès was 'very fortunate to have grown in China last year and to have achieved growth in the first half.' In France, first-half sales rose 8.7% to €740 million, with Q2 sales up 4.1%. The domestic market remains solid. 'Apart from minor cyclical effects, I don't see any break in the trend in France, which is one of the countries doing well,' said Dumas. Chief financial officer Eric du Halgouët added, 'In Europe and France, our stores are mainly visited by customers from the United States and the Middle East. We noted a slight temporary dip in France in June, but Middle Eastern customers have returned after recent periods of tension.' In contrast to its competitors, Hermès has performed especially well in markets like Japan. Sales there rose 17.6% to €815 million in the first half (+16% at constant exchange rates), following an already strong +22% in the same period in 2024. Second-quarter growth reached +17.4% (+14.7% at constant exchange rates). 'Japan has a long history with Hermès. It was our first customer in the 1980s. We share a very strong and special relationship,' emphasized Dumas. Thanks to strong local demand, Hermès is less dependent on tourist-driven traffic in Japan. Unlike other brands that shifted focus away from Japan in favor of other Asian markets, Hermès continued to invest locally. Today, it benefits from a well-established boutique network and resilient local teams. 'Our customers are quite loyal — to the stores, and often to their salespeople,' said Dumas. A similar model is seen in South Korea, where Hermès enjoys strong loyalty and ongoing growth. In the Americas, sales rose 11.7% in the first half (+9.5% reported) to €1.4 billion, and by 12.3% in Q2 (+6.5% reported), driven by double-digit growth in the United States. 'This is due to the Group's strong performance and the quality of our products and teams,' said Dumas, who also pointed to instability in the region. 'The U.S. remains volatile, with major differences from week to week and region to region. But it is one of the countries where all sectors beyond leather goods also perform very well.' Commenting on the 15% customs duty applied to U.S. sales, Dumas said the company was awaiting details. 'General U.S. duties were 4.7% at the start of the year, with an additional 10% applied in April, bringing the total to 15%. If the new 15% figure includes what's already in place, there may be no need to raise prices further.' Hermès had already increased U.S. prices by 10% in May. He added: 'The falling dollar is just as important — if not more — than tariffs in terms of impact.' In the 'Other' region — largely the Middle East — sales rose 16.3% in H1 (+17.2% at constant exchange rates) and 15.7% in Q2 (+20.4% at constant exchange rates), underscoring continued demand for luxury goods in Eastern markets.
