Unexpected Sales Drop Hits LVMH

The stock prices of Moet Hennessy Louis Vuitton (LVMH), the French luxury giant, experienced an 8% drop on Tuesday. This decline came after the company reported an unexpected decrease in sales for the first quarter, contrary to analysts' expectations of growth.

Breaking Down the Earnings Report

Released after the market closed on Monday, the earnings report highlighted a 2% decrease in first-quarter sales compared to the previous year. The most significant downturn was observed in the wines and spirits sector, with an 8% drop, attributed to reduced demand for cognac in the US and China. Meanwhile, fashion and leather goods saw a 4% revenue decline, and perfume and cosmetic sales remained stagnant.

Market Reaction

By 9:37 am CET, the fashion conglomerate's stocks had fallen by 8.16%, settling at €487.00. This sharp decline underscores the market's reaction to the unforeseen sales slump.