Key control
- The French luxury conglomerate shares LVMH sank on Tuesday after the company reported a decrease in sales.
- Louis Vuitton’s parent company was surpassed by Hermès as the world’s most valuable luxury brand for market capitalization.
- The CFO of LVMH said Monday that its “aspirational clientele” could be affected by Trump administration rates.
The actions of the French luxury conglomerate LVMH sank on Tuesday after the company reported a decrease in sales, and Louis Vuitton’s father lost its title as the most valuable luxury brand in the world.
With the decrease of almost 8% of the action in Europe on Tuesday, while the luxury rival Hermès marked 0.2% higher, Hermès beat LVMH as the world’s most valuable luxury brand for market capitalization.
Hermès has a market capitalization of around 246.4 billion euros ($ 280 billion), while LVMH market capitalization is now just below 244.1 billion euros, according to CNBC, based on a calculation using data data. LVMH’s shares have lost almost a quarter of their value since the beginning of the year, while Hermès’s actions rise a little more than 1%.
The matrix company of Louis Vuitton, Tiffany and dozens of other high -end brands said on Monday that their revenues of the first quarter decreased by approximately 2% year after year.
CFO says the company continues to face ‘uncertainties macro’
The CFO LVMH Cécile Cabanis said in a Monday call with the analysts that the company “continued to face the macro uncertainties and the lack of visibility in external factors” in the last quarter, and suggested that although the company “did not see an important change in the tendency” still of the tariffs, which it could.
“[I]T It is true that aspirational clientele is always more vulnerable in economic cycles and less positive uncertainties, and could have had an impact in recent weeks, “said Cabanis, according to an Alphasense transcription.
She said that the current 90 -day break can provide space for negotiations to improve rates, and that each of the LVMH brands would probably handle the cost of tariffs in a different way.
