💼 LVMH passes the crown to Hermès. The luxury sector is under pressure.
LVMH $MC.PA - the colossus of the luxury industry and owner of brands such as Louis Vuitton, Moët and Hennessy - has lost the title of the world's most valuable luxury company. After the release of its first quarter 2025 results , which disappointed all expectations, the stock fell by 8 % and handed the lead to rival Hermès $RMS.PA, whose market capitalisation now stands at €246.4 billion, compared to LVMH 's €244.1 billion.

📉 Results that hurt:
LVMH's revenue fell 3% year-on-year, instead of the moderate growth expected.

Wine and spirits division - biggest drop: -9%, due to weaker demand in the US and China.

Fashion and leather goods - key profit unit (78% of profits in 2024): - 5%.

Watches stagnate, sales unchanged.

Regionally, only Europe grew (+2%), while Asia excluding Japan - 11%, USA - 3%, Japan - 1%.

💬 Management and market reaction
LVMHCFO Cecile Cabanis said the company "has not seen a fundamental change in the trend", but acknowledged that customers may be more sensitive in an uncertain environment, particularly for products such as wines, spirits and cosmetics. Price changes are not yet planned across the board, but the firm is considering selective re-pricing due to inflation and currency fluctuations.

Analysts at Citi and Bank of America share the same view:
"The near-term outlook remains very weak. Any positive catalyst would have to come from an unexpected macroeconomic improvement."

🧭 Risk Map: geopolitics + tariffs
The luxury sector is inherently extremely vulnerable to global demand and geopolitical conditions. While affluent consumers are more resilient to price increases, tariffs and trade tensions, including President Trump's latest moves, are also causing uncertainty for premium brands.

➡️ customers from USA a China make up a significant portion of revenue. If there is a drop in confidence or a higher tariff burden, luxury sales are among the first to suffer.

LVMH remains a strong player with a diversified portfolio and the ability to pass on costs to the customer.

But the Q1 results are a clear signal that luxury is not sacrosanct, especially if the economy slows.

The outlook for the coming quarters is not very positive.

What's your take on this company? Does LVMH look like an interesting buy to you at these prices?