Hermès briefly overtook LVMH yesterday as Europe's largest luxury company by market cap after disappointing Q1 results. LVMH shares fell 7%, bringing its market value to 246 billion euros ($265 billion) versus Hermès’ 247 billion euros ($266 billion). The luxury giant missed sales expectations as U.S. shoppers reduced spending on beauty products and cognac while China sales remained weak. Analysts have lowered sector forecasts, with Bernstein now predicting a 2% industry decline this year amid recession fears following recent U.S. tariff announcements.