The luxury goods giant LVMH's Q1 sales fell short of expectations, and its stock price experienced a big dump.

Shares of LVMH, the world's largest luxury goods group, fell on Tuesday after the group reported lower-than-expected first-quarter revenue as U.S. consumers reduced their purchases of beauty products and cognac. LVMH shares fell 5.2% in early trading before extending losses to more than 8%, dragging down luxury rivals such as Kering and Hermes. On Monday, LVMH reported a 3 percent drop in first-quarter sales, well below analysts' expectations of 2 percent growth, offering the first glimpse into another difficult year for luxury companies after Mr. Trump's recent announcement of tariffs sparked fears of a recession. Royal Bank of Canada analyst Pilar Dardania said the results showed "a tougher trading environment for the luxury industry as a whole". He lowered LVMH's organic sales forecast for the year to flat from 3% previously, after sales failed to reach 4% in the first quarter. Deutsche Bank noted that the turnaround at the end of 2024 now looks like an anomaly, with sales falling by another 5% in the important fashion and leather goods businesses under brands such as Louis Vuitton and Dior.