LVMH Shares Drop 4.78% on Fears of 10–25% U.S. Tariffs from February 2026
LVMH’s ADRs slipped 4.78% as investors offloaded large-cap European export stocks on fears of 10–25% US tariffs starting February 2026. The STOXX Europe 600 declined 1.2%, pushing LVMH below peers like Hermès and ASML after Trump threatened these levies by June if Greenland negotiations fail.
1. LVMUY Shares Plunge on Greenland Tariff Threats
LVMH’s U.S. over-the-counter shares (LVMUY) fell 4.78% on January 20, marking the largest one-day drop since October 2025. Trading volume surged to 1.2 million shares, more than double the two-month daily average. The sell-off followed Goldman Sachs’ warning that proposed U.S. tariffs of 10% on European luxury goods, effective February 1, could shave 0.1–0.2% off euro-area GDP. Analysts estimate that U.S. exports account for roughly 15% of LVMH’s total revenue, making the company particularly vulnerable to any additional import duties.
2. Analyst Revisions and Investor Sentiment
Several brokerages revised LVMUY’s 2026 earnings estimates lower by an average of 3%. Morgan Stanley cut its operating profit forecast by €200 million, citing a potential 5% drop in U.S. sales volumes, while Credit Suisse highlighted a currency headwind if European growth slows. Despite the near-term sell-off, 75% of analysts still rate the stock as a buy, pointing to LVMH’s diversified brand portfolio and strong pricing power in Asia and the Middle East. Hedge fund positioning data shows a moderate reduction in net long exposure over the past two trading days, suggesting cautious optimism among institutional investors.