European luxury stocks sold off sharply following disappointing first-quarter results. Major brands cited slowing demand and geopolitical instability as primary drivers for the decline.
LVMH, Kering, and Hermès reported that the Middle East conflict significantly hampered regional sales. The instability also curtailed international tourism to key European luxury markets.
Hermès shares suffered a record single-day drop of 14%. Kering stock fell by approximately 10% during the session.
The sector-wide downturn erased billions in market value. LVMH, Burberry, and Richemont also experienced significant share price declines.