Paris, Jan 19, 2026, 17:44 CET — Market closed.
- LVMH shares dropped 4.3% in Paris, lagging the wider market.
- Morgan Stanley downgraded its rating, citing concerns that tariffs and currency fluctuations may tighten margins
- Investors are turning their attention to LVMH’s full-year results due next week and the Feb. 1 tariff deadline
Shares of LVMH Moet Hennessy Louis Vuitton SE closed Monday down 4.3% at 582.80 euros, slipping to a low of 580.00 during the session. The stock ended 26.40 euros below Friday’s finish.
Luxury stocks fell across Europe following U.S. President Donald Trump’s threat of new tariffs on imports from eight European countries, tied to his demand to buy Greenland. Trump warned of a 10% tariff starting Feb. 1, jumping to 25% from June 1 if no agreement is reached. “Trump’s actions over the weekend have inflamed geopolitical risks while also reintroducing trade uncertainty,” said Kyle Rodda, senior financial market analyst at Capital.com, noting the low-volume trading could amplify price swings. Reuters
Morgan Stanley weighed on LVMH, lowering its rating to “equal-weight” from “overweight” — essentially signaling the stock is expected to track its sector rather than outperform. The firm kept its price target steady at 635 euros, noting the shares are trading near the high end of their historical valuation range. The 12-month forward P/E is around 26.1 times, well above the long-term average of 20.5. “We struggle to see why the stock would continue to appreciate in the coming weeks,” Morgan Stanley said, flagging a potential 150-basis-point hit to margins in 2026 due to foreign-exchange fluctuations and tariffs. Investing.com
The broader luxury sector slipped, with Hermès and Kering falling in early trading, joined by Swiss names Richemont and Swatch. Concerns over potential hikes in U.S. tariffs have investors nervous about demand in this crucial luxury market.
In a separate move, LVMH announced it will sell the Hong Kong and Macau travel retail operations of its DFS unit, along with intangible assets across greater China, to China Tourism Group Duty Free Corp for roughly $395 million.
The DFS deal is modest compared to LVMH’s main brands, but it arrives as investors wrestle with pinpointing growth drivers in Asia and gauging luxury groups’ pricing power in the U.S.
Traders watched closely to see if tariff talk would escalate into real measures—and how retaliation might play out. Even a brief flare-up can throw shipments off, prompt price changes, and cloud demand signals in a sector that depends heavily on global tourists and cross-border spending.
But market sentiment can shift quickly. If tariff threats ease into talks, or firms successfully shift costs onto consumers without hurting sales, Monday’s drop might soon seem like an overblown reaction.
LVMH’s next major event is its 2025 full-year results, set for Tuesday, Jan. 27, after the Paris market closes. A webcast will follow at 6 p.m. Paris time.
For now, the stock will probably react to news flow: updates on the U.S. tariff strategy, Europe’s countermeasures, and whether investors begin gearing up for the Feb. 1 tariff rollout.
