LVMH, whose high-end brands include Louis Vuitton and Dior, jewellery brand Tiffany & Co. and beauty chain Sephora, missed expectations for first-quarter sales as the United States shoppers curbed purchases of beauty products and cognac while sales in China remained weak.

LVMH shares dropped over 8% in morning trading, bringing its market capitalization down to 243.9 billion euros, compared to $277.40 billion for Hermes, before LVMH recovered to $280.35 billion.

Shares across the sector traded lower, with Gucci-owner Kering and Hermes down 2.6% and 1.5% respectively, Swiss-based Richemont, which owns Cartier, was down 2.5% while Italian cashmere brand Brunello Cucinelli was down 2.6%.

A 3% decline in LVMH's first-quarter sales, well below analyst expectations for 2% growth, pointed to another difficult year for luxury companies following President Donald Trump's recent tariff announcements, which have sparked fears of a recession.

--Reuters--