In the first quarter, key performers in the luxury sector experienced significant fluctuations that reflect both global economic trends and evolving consumer behavior. LVMH $LVMHF , the powerhouse behind brands such as Louis Vuitton, Dior, Tiffany & Co. and Sephora, temporarily lost its standing as Europe’s largest luxury group by market capitalization, succumbing to rival Hermes amid investor pessimism following underwhelming Q1 sales reports.
Last week, the luxury market witnessed a significant event: Hermès International SCA’s $RMS.PA market capitalization temporarily surpassed that of its competitor, LVMH Moët Hennessy Louis Vuitton SE $MC.PA. This remarkable development not only signals a symbolic shift but also reflects deeper trends and realities within the global economy and luxury sector.
French luxury giant LVMH Moët Hennessy Louis Vuitton SE reported a significant decline in sales for the first quarter of 2025, surprising international markets. The main hit was taken by its leading division, fashion and leather goods, where revenue dropped by 5% in physical terms compared to the previous year. Preliminary forecasts from analysts were considerably more optimistic, predicting only a slight decline of around 0.55%.
Recently, it was announced that Italian company Moncler SpA intends to appoint Alexander Arnault, the son of billionaire and founder of LVMH Bernard Arnault, to its board of directors. This move is anticipated following a successful deal with the French luxury company that took place last year. This decision underscores the growing strategic partnership between Moncler and LVMH, which is becoming increasingly significant in the world of fashion and luxury.
In the midst of fierce competition in the cosmetics retail sector, Sephora, one of the leading brands in beauty and fashion, is undergoing significant changes in its leadership. Guillaume Motte, the company’s CEO, has taken on the direct oversight of Sephora’s operations in China. This decision comes as the brand seeks to earn consumer trust within the country, the second-largest market for LVMH, Sephora’s parent company.
Recent developments in the French media industry demonstrate a shift in strategy regarding compensation for the use of journalistic content on digital platforms. Les Echos-Le Parisien, part of the LVMH group $MC.PA, has decided not to participate in the lawsuit against the social media platform X—a case initially intended to secure payments for content usage. This move is particularly significant amid ongoing legal disputes between French media outlets and X’s owner, Elon Musk.
European stocks have faced challenges after reaching historic peaks. The upcoming week will be crucial for the markets as major corporate earnings reports will be released. Among the key players is $ASML, whose results could spark a rally in the stock market.
In the world of investing and trading, news about the strategic decisions of large corporations can significantly impact market sentiment. Recent statements surrounding Diageo $DEO, a leading global alcoholic beverages producer, have caused a stir. Specifically, discussions have centered on rumors regarding the potential sale of its beer brand Guinness and its stake in Moet Hennessy, a subsidiary of LVMH $MC.PA.
