Louis Vuitton, the French maker of laminated canvas handbags, was named the world’s most valuable luxury brand for a seventh consecutive year.

The brand, owned by LVMH, is worth $25.9 billion, a 7 percent increase from 2011, according to Millward Brown Optimor’s 2012 BrandZ study.

Hermes, in which LVMH owns a stake, rose to second place with a value of $19.1 billion, up 61 percent on last year. Rolex, the closely-held Swiss watch brand, was ranked third at $7.17 billion, a 36 percent gain.

Hermès celebrates its 175th anniversary with an exhibition in London illustrating the company’s relationship with leather over the years.

The show is divided into 12 rooms representing various leather collections – including equestrian, travel, handbags and accessories.

On show are bespoke objects from the history of the company – which was founded in 1837 – such as items commissioned by the Duke of Windsor for Wallis Simpson.

Hermès has unveiled a video showcasing its Hermès Petit H Creative Lab project, which sees the luxury house turn its iconic designs into one-off objects thanks to an upcycling initiative.

Following previous team-ups with the likes of French conceptual artist Daniel Buren, Hermès has announced its latest limited edition scarf collaboration will be with Japanese photographer Hiroshi Sugimoto.

The partnership is in honor of the third edition of the luxury label’s Hermès Editeur project, which intertwines the world of fine arts and crafts with the realm of textiles.

Sugimoto’s limited edition silk scarves have been inspired by his “Colors of Shadow” project, and will be presented at the Art Basel contemporary art fair this June.

Hermes, which already produces the world’s most expensive functional handbags, the Kelly and the Birkin, has unveiled four new designs, each priced at $1.9 Million.

The miniature totes, which are crafted from gold and studded with thousands of precious stones, double up as high jewellery.

Significantly smaller than the popular leather versions, they are designed to be worn as a bracelet, with the handbag strap resting on the wrist.

French luxury group Hermes has posted record sales of 2.8 billion euros ($3.8 billion) in 2011, highlighting the resilience of luxury brands in the face of the weakening global economy.

The group’s sales were up 18.3 percent last year, beating the target of 15-16 percent growth, it said in a statement, and its operating margin was up more than 30 percent.

The famed maker of luxury bags and silk scarves said revenue growth had been led in non-Japan Asia, where sales were up 29 percent, and in the United States, where they were up 26 percent.