LVMH plunge puts spot as world’s top luxury stock at risk after sales miss

Louis Vuitton’s display in Mitsukoshi department store in Tokyo, Japan, was showcased on Friday, April 4, 2025. Shares of LVMH dropped by as much as 8% on Tuesday, briefly losing its top position as the world’s largest luxury firm to rival Hermès due to an unexpected decline in first-quarter sales. LVMH reported a 3% decrease in first-quarter sales compared to the previous year, falling short of analyst expectations for slight growth. This decline impacted the broader sector, with other luxury brands like Dior and Burberry seeing decreases in their share prices as well. Despite LVMH’s market capitalization briefly falling behind Hermès, it remains a key player in the luxury market. The drop in sales was mainly attributed to lower demand for cognac in the U.S. and China, while Europe was the only region to see growth. Analysts are cautious about the luxury sector’s short-term outlook, citing trade tensions and economic uncertainty as potential challenges ahead. The impact of tariffs on luxury brands like LVMH remains a concern, with investors closely monitoring how the company navigates these challenges moving forward.