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 (US$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 percent drop in first quarter sales to 20.3 billion euros. The producer of Louis Vuitton bags and Dom Perignon champagne reported a slight decline in U.S. sales, where it generates a quarter of its revenue. The disappointing performance came before U.S. President Donald Trump’s April 2 “Liberation Day”, which included 10 per cent tariffs on global imports.
