Markets hate uncertainty and remain skittish. Luxury bellwether LVMH saw shares plunge this week as the conglomerate missed first-quarter sales estimates, ceding its number one position to its rival Hermès.  LVMH shares fell 7.9% on Tuesday, sending its market capitalization down to €246.5 billion ($277.8 billion), the lowest level since November 2020. The news triggered a decline across the luxury sector.The poor performance is attributed to slowing demand in the US, ongoing struggles in China, and the continued looming cloud of Trump's on-again, off-again tariffs.Perfume & Cosmetics and Selective Retailing, which includes Sephora, saw a -1% decline on an organic basis for Q1 YoY, which fared better than Wine & Spirits, which fell -9%, and Fashion & Leather goods, which was down -5%, and accounted for 78% of profit in 2024.The group said the relative stability of its Perfumes & Cosmetics business continued to reinforce its selective distribution policy and maintained its innovative momentum in fragrances, makeup, and skincare. Christian Dior was boosted by the success of its fragrances, with Eau de Parfum J’adore, the launch of Dior Homme, and the successful La Collection Privée high perfumery line. Innovations in makeup (within Forever And Ever Dior and Dior Addict) and skincare also contributed to the maison’s performance.Guerlain was buoyed by the latest additions to its Aqua Allegoria and L’Art & La Matière fragrance lines, as well as the successful relaunch of its iconic Rouge G lipstick. Parfums Givenchy benefited from the development of L’Interdit and the success of Prisme Libre in makeup.