The going is so good at European luxury empire Hermès that even distant relatives of the brand's original founder are landing seven-figure fortunes.
Wilfried Guerrand sits on the executive committee of Paris-based Hermès, acting as the managing director for métiers (which loosely translates to trade), information systems and data.
He is also a distant descendant of one arm of the Hermès dynasty, and this year has gifted 450 shares to each of his four children: Sixtine, 25, Stanislas, 20, Mathias, 19, and Albane, 18 according to regulatory filings seen by Bloomberg.
Over the past five years the share price of Hermès International—which makes famously coveted handbags including the Birkin and Kelly—has spiked 226% to more than €2,000 a share at the time of writing.
This means that the total value of the stock donated to Guerrand's offspring is just shy of €3.9 million ($4.3 million).
As a result, the Gen Z quartet became millionaires in a matter of months, courtesy of their father's donation.
Guerrand first joined Hermès almost 30 years ago, having studied at Neoma Business School, the London School of Economics and NYU Stern.
He was handed the reins of Hermès Femme—the women's collections—in 2012 and now directs the brands envied ready-to-wear, silk, jewelry, and fashion accessories specialists, as well as overseeing IT and data.
According to exchange filings viewed by Bloomberg, Guarrand owned 10,147 Hermès shares at the end of last year, meaning he sits on assets worth more than €21.6 million ($23.9m).
The Hermès brand—launched by harness-maker Thierry Hermès in the late 1830s—now spans three notable surnames with more than 100 people in its lineage.
Those three surnames are Dumas, Guerrand and Puech—the latter of which counts Nicolas Puech among its members.
Puech was valued by Forbes in 2024 at $13.6 billion and made headlines when he announced he wanted to gift his fortunes to his gardener.
Since then, Puech launched legal proceedings against his former wealth manager after Puech claimed the money had vanished, and he had no idea where to.
While Puech is a family member who has become estranged from the Hermès brand, other descendants still helm the business.
Executive chairman Axel Dumas is a sixth-generation member of the family that founded the fashion house, and has held the position since 2013.
Hermès did not immediately respond to Fortune's request for comment.
Europe's luxury dynasties
The Hermès family and its sprawling offshoots—estimated to be worth $151 billion—aren't a unique case in Europe.
In fact, a significant group of billionaire Gen Z and Millennial nepo babies of the continent have inherited their wealth thanks to the fashion world.
For example, three of the six Del Vecchio children appeared on Forbes‘ billionaires list for 2024: 19-year-old Clemente, 22-year-old Luca, and 28-year-old Leonardo.
Each has a fortune of $4.7 billion courtesy of their 12.5% stake in Luxembourg-based holding company Delfin, run by their late father, the senior Leonardo del Vecchio.
Likewise, Germany is home to 29-year-old Sophie Luise Fielmann and her $2.7 billion fortune—who appeared on the list for the first time courtesy of the majority shareholding position she has in her late father’s business, eyewear company Fielmann AG.
Hermès success
Unlike many of its competitors, Hermès has continued to perform despite a general downturn in demand for luxury goods.
In its June half-year report, the brand announced revenue of €7.5 billion, up 15% at constant exchange rates.
Demand across regions showed "remarkable momentum" despite the "challenging context," Hermès added, with the exception of Asia, where demand in China has dipped.
Sales in Japan, Europe and the Americas continued to be "robust."
“The solid first‐half results, in a more complex economic and geopolitical context, reflect the strength of Hermès’ model," Dumas said. "The group is confident in the future and is continuing to invest, to pursue its vertical integration projects and to create new jobs, while remaining true to its values.”
The narrative is at odds with other luxury brands, which, in addition to seeing a downturn in demand in China, are also blaming a lack of consumer confidence for falling sales.
