(Bloomberg) -- Hermes International SCA’s value overtook that of L’Oreal for the first time on Friday, making the Birkin bag maker the second most-valued company in the French blue-chip CAC 40 index.

Hermes’s strong revenue report powered the luxury company’s stock to record highs on the same day that the beauty firm’s shares slithered after a weaker-than-expected update.

With its market capitalization reaching €230 billion ($248 billion), Hermes assumed the second position in the French benchmark, behind luxury rival LVMH Moet Hennessy Louis Vuitton SE, which is still a long way ahead at more than €400 billion. L’Oreal’s market value fell to €225 billion.

Read more: China’s Tepid Rebound Has Left Luxury Shops Relying on US Demand

Hermes is defying a broader slump in the high-end goods market as its exposure to the ultra-rich shields it from the worst of the lull. The results were “rock solid,” according to Citigroup Inc. analyst Thomas Chauvet.

Friday’s report pushed the stock up as much as 6.3% to a record high.

French peer L’Oreal isn’t faring as well. Headwinds came from its performance in North Asia due to a difficult travel retail market, putting pressure on its premium unit and pulling its shares down almost 8%.

Read more: L’Oreal Slumps After Chinese Shoppers Rein in Travel Spending

--With assistance from Phil Serafino and Angelina Rascouet.

(Updates with Hermes production strategy in fourth paragraph)

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