Exhibition of the Louis Vuitton store window in the department stores Mitsukoshi in Tokyo, Japan, on Friday, April 4, 2025.
Bloomberg | Getty images
Actions or LVMH Fun up to 8% on Tuesday morning, at a time losing its position as the world’s largest luxury firm to rival Hermès after an unexpected decrease in the first quarter sales.
LVMH reported a 3% year -on -year drop in sales of the first quarter in a commercial update published shortly after the market closure on Monday, missing expectations of consensus analysts of a slight growth.
The results demolished the broader sector in the first offers in the middle of broader market profits. Barrier The actions decreased 2.5%, Burberry 4.4% fell while Richemont Traded 1.6% lower.
A 0.7% closer fall in the price of Hermès’s shares saw the market capitalization of the Birkin bag manufacturer over LVMH in a moment during morning trade, according to Reuters. The LVMH market capitalization was the last 247.1 billion euros ($ 280.6 billion) compared to 244,53 billion euros of Hermes around 09:30 am in London, according to a calculation of CNBC of LSE data.
LVMH’s wines and spirits saw the decrease in the most clear revenues in the first quarter, 9%less, since it marked Waker’s demand in the United States and China for Cognac, the popular brandy variety that has been trapped in geopolitical tensions.
The key fashion and leather articles division, which represented 78% of the profits in 2024, slid 5%. Sales or watches were flat.
Europe was the only region to register growth, 2% more than an organic base. Asia, excluding Japan booties, 11%, US sales were 3%lower, while Japan fell by 1%.
Citi Thomas Chauvet and Mahankumumar analysts said in a Monday night that “there was not much to cheer on Luxury Bellwether,” with sales “in general below the most conservative buying expectations.”
They added that it was to disseminate to foresee the improvement of sequential income in the second and third quarter for LVMH or the luxury sector, while the US and global economic uncertainty remained high.
Meanwhile, Jefferies analysts reduce their target price in shares to 510 euros ($ 578.62) of 670 euros.
The luxury sector, which depends on the global supply chains and the consumer demand of the United States, faces a large amount of winds against the volatile commercial policy of the president of the United States.
LVMH, owner of brands, including Louis Vuitton, Moët & Chandon and Hennessy, is the first European luxury firm to inform the first quarter gains since Trump announced recognized tariffs.
As such, investors seek an indication of the company’s term guide on the potential impact of tariffs on input costs and consumer demand.
LVMH’s financial director, Cecile Cabanis, told analysts in a Monday call that commercial tensions were complicating the group’s ability to do business, with parameters “changing every hour,” Reuters said.
Luxury brands are expected to be more protected than other retailers of the immediate impact of rates, with high -end labels that can generally transmit additional costs to rich consumers.
Even so, analysts have warned that the potential of an economic recession induced by the rate could in the demand, particularly in the key markets of the USA and China, delaying the recovery of the sector of a period of prolonged concern.