Ah, Hermès: A name that has come to symbolize not only luxury but increasinglya kind of intergenerational scheme where the prize is obscene wealth. Thelatest to cash in on the family’s good fortune are the Gen Z offspring of WilfriedGuerrand, a distant descendant of the luxury house’s founder Thierry Hermès. This is a tale of money, family and the irresistible pull of Birkins and Kellys. Read on.

Guerrand, who holds a role on the label’s executive committee, decidedit was time for his four children — Sixtine (25), Stanislas (20), Mathias (19),and Albane (18) — to experience the joys of being fabulously wealthy.

How? By gifting each of them 450 Hermès shares, worth a whopping $4.3million in total. Thanks to the skyrocketing value of Hermès stock, which hassurged over the past five years, the Guerrand kids became millionaires almostovernight. And while most Gen Z-ers are perfecting TikTok dances or flippingburgers, these four can now focus on the serious task of managing their newwealth — or perhaps just hiring someone to do it for them.

Hermès - A Dynasty Worth It's Weight In Birkin Bags

The Hermès brand, originally founded as a harness-making business inthe 1830s, has transformed into a $151 billion empire with multiple familybranches (think Dumas, Guerrand, and Puech). These branches are less"family tree" and more "family forest," with over 100people bearing the Hermès lineage. And they're not just surviving; they'rethriving — very, very well.

Gen Z heirs of Hermès founder become millionaires overnight after inheriting fortune https://t.co/kzdWik212d pic.twitter.com/bhROGShciz

— Independent Lifestyle (@IndyLife) September 6, 2024

Take, for instance, Nicolas Puech, another member of the Hermès clan.Worth a cool $13.6 billion according to Forbes, Puech recently made headlinesfor his eccentric philanthropy, announcing plans to gift his entire fortune tohis gardener. Yes, you read that right — his gardener. But the plot thickens!In a twist befitting a soap opera, Puech is now suing his former wealthmanager, claimingthe money has mysteriously vanished. You can't make this stuff up, folks.

Luxury Stocks on a Bumpy Ride

While the Hermès family is busy distributing wealth like candy atHalloween, Europe's luxury sector is grappling with its own set of challenges. Stocksof luxury giants, including Hermès, have taken a hit recently, spooked byeconomic uncertainty in China — a key market. On September 5, shares ofHermès dropped as part of a broader sell-off among European luxury stocks,following concerns over China's economic slowdown and reduced consumerconfidence.

But don't let that fool you. Even as other luxury brands bemoan the downturn,Hermès continues to defy gravity. In its Junehalf-year report, the company announced revenue of €7.5 billion, up 15% atconstant exchange rates. Sales in Japan, Europe, and the Americas remainedrobust, even as China lagged. "The solid first‐half results in a morecomplex economic and geopolitical context reflect the strength of Hermès’model," said Axel Dumas, the sixth-generation executive chairman ofHermès. While other brands struggle, Hermès keeps riding high — proving that ittakes more than a little economic turbulence to knock a family this wealthy offcourse.

Nepotism's In Fashion

Let’s face it, most of us don’t have a family tree that comes with abalance sheet. But for the Hermès clan, nepotism isn’t just a dirty word; it’spractically a job description. Guerrand himself, a long-time Hermès executive,is just one of many family members with a golden ticket to the upper echelonsof the company. With a fortune in shares and decades of experience, Guerrand isnot only an heir, but a key player in managing the brand.

As for the rest of the Hermès dynasty, they seem to have nailed downthe formula for preserving and multiplying their fortune, proving that youdon’t need a disruptive startup to get rich — you just need the right lastname. Forget bootstraps; this is all about Birkin straps.

The Hermès Way - Born Rich, Stay Rich

For most of us, the world of Hermès seems like a different planet — onewhere leather handbags cost more than a new car, and where family members aremade millionaires at the drop of a hat (or rather, at the gifting of somestock). And while the rest of the luxury sector frets over China's economicslowdown, Hermès seems content to continue its role as the crown jewel of conspicuousconsumption.

So, what's the lesson here? If you're lucky enough to be born into theHermès dynasty, the chances are you won't just get a job, you’ll get a fortune.For everyone else, well, there's always the chance of befriending NicolasPuech’s gardener.

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This article was written by Louis Parks at www.financemagnates.com.