Louis Vuitton Moet Hennessy shed 6% on Wednesday after news of stronger fourth-quarter sales failed to impress against a backdrop of heightened expectations.
Sales climbed 1% to €23.9 billion (£20.0 billion) in the three months to December, aiding a 1% improvement over the full year to €84.7 billion.
Though better than analysts’ forecasts, declining sales across critical fashion and leather goods, alongside wines and spirits appeared to cloud sentiment.
LVMH had been in the spotlight after recent expectation-beating figures from Richemont and Burberry Group PLC raised hopes of a luxury sector recovery.
Analysts cautioned that a 14% year-to-date gain for its shares left LVMH needing to justify such an improvement, however.
“While LVMH saw a sequential improvement, it was less pronounced compared to Richemont and Burberry,” Quilter Cheviot analyst Mamta Valechha said.
“Had LVMH been the first to report this earnings season, this set of results would have been digested well.
“However, peers had already set the bar high, so it is unsurprising to see its shares down this morning.”
Burberry overcame an early decline to sit 0.3% higher on Wednesday.