Part 1: The Mathematics of Permanence: Hermès vs. LVMH
Tue Feb 03 2026
CAGR reveals what branding never will: which luxury houses are built to endure.
In this opening episode of our Pink Paper #1 Data Salon, Danetha Doe is joined by Nick Chandler for a deep, disciplined examination of the metric that tells the truth when narratives fail: CAGR — compound annual growth rate.
Using original research from Permanence Capital: The Economic Operating System for Enduring Luxury, this conversation explores one of the most revealing contrasts in modern luxury economics:
Why does Hermès continue compounding at nearly 2× the rate of LVMH—across 1-year, 3-year, 5-year, 10-year, and even 20-year horizons—despite being smaller, slower, and far more selective?
This episode unpacks:
How Hermès’ coherence, rhythm, and pricing discipline produce superior long-term compounding Why LVMH’s portfolio model creates breadth, not depth—and how that impacts CAGR Why luxury CAGR behaves like an ecosystem, not a trend cycle How compounding reveals permanence in ways revenue headlines cannotWhy CAGR is not just a financial metric, but a philosophical signal for founders and investors
Nick brings clarity to the data, while Danetha translates what it means for founders building from cultural capital: when growth is aligned with identity, cadence, and standards, it doesn’t decay with size—it strengthens.
This episode sets the foundation for a three-part series examining luxury through the lens of Permanence Capital—where beauty is treated as infrastructure, not content, and where endurance matters more than acceleration.
Whether you’re a founder, investor, or institution, this conversation reframes how to read luxury balance sheets—and how to build companies designed to last beyond cycles.
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CAGR reveals what branding never will: which luxury houses are built to endure. In this opening episode of our Pink Paper #1 Data Salon, Danetha Doe is joined by Nick Chandler for a deep, disciplined examination of the metric that tells the truth when narratives fail: CAGR — compound annual growth rate. Using original research from Permanence Capital: The Economic Operating System for Enduring Luxury, this conversation explores one of the most revealing contrasts in modern luxury economics: Why does Hermès continue compounding at nearly 2× the rate of LVMH—across 1-year, 3-year, 5-year, 10-year, and even 20-year horizons—despite being smaller, slower, and far more selective? This episode unpacks: How Hermès’ coherence, rhythm, and pricing discipline produce superior long-term compounding Why LVMH’s portfolio model creates breadth, not depth—and how that impacts CAGR Why luxury CAGR behaves like an ecosystem, not a trend cycle How compounding reveals permanence in ways revenue headlines cannotWhy CAGR is not just a financial metric, but a philosophical signal for founders and investors Nick brings clarity to the data, while Danetha translates what it means for founders building from cultural capital: when growth is aligned with identity, cadence, and standards, it doesn’t decay with size—it strengthens. This episode sets the foundation for a three-part series examining luxury through the lens of Permanence Capital—where beauty is treated as infrastructure, not content, and where endurance matters more than acceleration. Whether you’re a founder, investor, or institution, this conversation reframes how to read luxury balance sheets—and how to build companies designed to last beyond cycles.