LVMH, the world’s biggest luxury group, has lost its place among Europe’s five most valuable public companies, ending a long run near the top as investor sentiment sours on high-end retail.

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Shares in the French luxury giant — behind brands like Louis Vuitton, Dior, and Tiffany — are now down 25% year-to-date, marking the company’s worst performance since the 2008 financial crisis. Its market cap has slipped to €239 billion, pushing it below Swiss rival Nestlé.

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The fall reflects a broader pullback in luxury as the global market slows. Demand in China is wobbling, U.S. consumer sentiment is under pressure from Trump’s new tariffs, and investors are starting to question whether the post-COVID boom in high-end fashion has fully run its course.

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Barclays and Morningstar analysts have both issued cautious outlooks, citing weaker growth in LVMH’s core fashion and leather goods division and a delayed earnings recovery across the sector.

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It’s a big shift for a stock that once rivalled Meta in market cap and claimed a spot in the world’s top 10. At the peak of the luxury boom, LVMH seemed unstoppable — but 2025 is proving to be a reality check.

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Now, the industry is watching closely: if LVMH can’t hold up, what does that say about the rest of the luxury space?

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