French luxury giant LVMH has dropped out of Europe’s top five listed companies by market value after its stock fell about 25% year-to-date — its steepest decline since the 2008 financial crisis. The company's current market capitalization stands at around 239 billion euros ($259 billion), now below Swiss food giant Nestlé. LVMH faces dual pressures from weakening demand in China and potential new U.S. tariffs, leading to cautious market expectations for its second-quarter results. Investor confidence in a short-term luxury rebound has been shaken, with Barclays recently downgrading LVMH to “equal weight” and projecting a slow recovery in its core fashion and leather goods division. Still, long-term market sentiment remains relatively positive: of nearly 40 analyst ratings compiled by Bloomberg, only one currently recommends “sell.”