The five secrets to Ferrari’s success as a luxury brand
Its sales are growing double digits even as other luxury companies post declines or dramatically slower growth. Wealthy customers lucky enough to be anointed as Birkin-bag worthy can purchase a Birkin 25 for about $11,000 and flip it the same day for more than $23,000. Analysts predict Hermès could surpass Louis Vuitton in revenue within the next three years as the world's largest luxury brand.
This year, Ferrari for the first time surpassed Hermès as the most valuable luxury company in the world as measured by stock multiple, which gauges growth and profit prospects. Ferrari's stock now trades at 50 times earnings, compared with 48 for Hermès and 23 for LVMH.
The storied automaker, founded in 1947 by Enzo Ferrari as way to fund his race team, debuted on the New York Stock Exchange at $60 a share in 2015. It now trades at $410 a share.
The company is valued at more than $75 billion — roughly 1½ times the market cap of Ford or General Motors, which make millions of cars each year. Ferrari produced only 13,663 cars last year.
