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Acquired · Hermès · History

History

Hermès was founded in 1837 (Paris, France). The timeline below traces every inflection point Acquired identified — founding, leadership changes, strategic pivots, crises, cultural moments.

9 events8 decades covered1837 founded
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The story

Thierry Hermès arrived in Paris from Germany in 1837 as Napoleon III was rebuilding the city and the merchant class was rising. He made the best horse harnesses in Europe by hand, earned imperial appointments, and established the principle that has governed every generation since: one artisan, one product, no efficiency shortcuts. Six generations of family leadership later, Hermès has €14B in revenue, a 71% gross margin, and a $230B market cap — 'a software business that doesn't need any R&D,' as Ben puts it — while every peer merged into a conglomerate.

Inflection points · grouped by decade

1830s

  • 1837Founding

    Thierry Hermès opens a harness workshop in Paris

    Paris is being rebuilt by Napoleon III; the rising merchant class is buying status through carriages. Thierry makes the finest harnesses by hand.

    [Acquired Hermès]

1880s

  • 1880sStrategic shift

    Son Charles-Émile moves to Rue du Faubourg Saint-Honoré

    Relocates to the address that remains Hermès' flagship store. Begins adding leather goods beyond equestrian tack.

    [Acquired Hermès + public record]

1920s

  • 1920sProduct

    First leather handbags + the silk carré

    Émile-Maurice Hermès sees the zip fastener in Canada and buys the rights for Europe; introduces leather handbags. The silk scarf (carré) follows, launching the non-equestrian product range.

    [Acquired Hermès]

1950s

  • 1956Cultural

    Grace Kelly photographed with the 'Kelly' bag

    Grace Kelly uses an Hermès bag to shield her pregnant figure from paparazzi; Life magazine publishes the photo. The bag is renamed the Kelly.

    [Acquired Hermès + public record]

1980s

  • 1984Product

    The Birkin bag created (Jean-Louis Dumas meets Jane Birkin)

    Jean-Louis Dumas sits next to Jane Birkin on a flight; she complains she can't find a leather bag she loves. He sketches one on the plane. It takes five years to become a cultural icon.

    [Acquired Hermès]

1990s

  • 1993IPO

    Hermès lists on Paris Stock Exchange (19% float)

    Family sells 19% to the public, retaining ~81%. Deliberate undervaluation of the float: they want a broad, long-term shareholder base, not a concentrated block that could threaten control.

    [Acquired Hermès]

2010s

  • 2010-2014Strategic shift

    LVMH's stealth stake — and the family defense

    Bernard Arnault uses equity swaps to secretly accumulate a 23% stake without disclosure, then reveals it. The Hermès family creates an enduring family holding company, locking ~50% of shares. Regulators force LVMH to distribute the stake; the family survives.

    [Acquired Hermès]

  • 2013Leadership

    Axel Dumas becomes sixth-generation CEO

    Revenue doubles from ~€3.5B to €7B under his first five years. He learned the business with his hands as a craftsperson, not as a business-school executive.

    [Acquired Hermès]

2020s

  • 2024Acquired covered

    Acquired's Hermès episode

    Ben and David call it 'the oldest story we have ever told' — 187 years, six generations, still independent, still the crown jewel of global luxury.

    [https://www.acquired.fm/episodes/hermes]