Hermes overtakes LVMH as world's most valuable luxury group

PARIS (AFP)

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 ($280.5 billion) at the close of trading in Paris, topping LVMH's 244.4 billion euros.

LVMH shares sank 7.8 percent 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 LVMH reported a slight decline in US sales, where it generates a quarter of its revenue.

The disappointing performance came before President Donald Trump's April 2 "Liberation Day", which included 10 percent tariffs on global imports.