LVMH shares sank 7.8% a day after the group reported a 2% drop in Q1 sales to 20.3b euros

French group Hermes overtook LVMH as the world’s most valuable luxury company on Tuesday after shares in the Louis Vuitton maker tumbled following weaker-than-expected quarterly sales.

The market capitalisation of Hermes reached 248.6 billion euros ($280.5 billion) at the close of trading in Paris, topping LVMH’s 244.4 billion euros.

LVMH shares sank 7.8 per cent a day after the group owned by Europe’s wealthiest man, Bernard Arnault, reported a two per cent drop in first quarter sales to 20.3 billion euros.

The producer of Louis Vuitton bags reported a slight decline in US sales, where it generates a quarter of its revenue.

The disappointing performance came before President Donald Trump’s April 2 “Liberation Day”, which included 10 per cent tariffs on global imports.

News Credits- GULF NEWS