Luxury companies across the board have seen a mass stock sell-off since April 2, affecting even the strongest brands.

Hermès’ share price fell more than seven per cent in early trades on April 7, and has dropped more than 13 per cent since ‘Liberation Day’.

The Birkin-maker was one of the few success stories of the 2023 luxury downturn due to its remarkable capacity to carve out a modern brand identity, with its stock up 230 per cent over the past five years.

Ferrari’s share price, which has risen by more than 156 per cent in the last five years, fell by nearly seven per cent in early trades.

Both stocks are, for once, following the track of the wider luxury market. Burberry, Kering, and LVMH have dropped 18 per cent, 20 per cent 12 per cent, respectively, since April 2.

“There are heavy losses for the luxury sector,” Kathleen Brooks, research director at XTB, said. “Investors are still seeking out areas of safety, including utilities, real estate, healthcare and consumer staples.”

Prior to Trump’s tariffs, analysts viewed the US as the main growth driver in luxury in 2025. The sector has been deeply affected by a post-pandemic downturn in Europe and China.

“The most impacted stocks will be those with the highest revenue exposure to the US,” Mamta Valechha, consumer discretionary analyst at Quilter Cheviot.