PARIS (Reuters) – LVMH’s (LVMH.PA) shares fell on Tuesday, weighing on the broader European luxury goods sector, after the COVID-19 pandemic tore a hole into the Louis Vuitton owner’s second-quarter results.

LVMH reported late on Monday a slump in both its second-quarter sales and profits, and the company’s stock price fell by 3.5% in early session trading, dragging down the shares of rival Kering (PRTP.PA), which publishes results later on Tuesday.

“LVMH’s H1 2020 profit from recurring operations came in well short of analysts’ expectations and JPM estimates despite a beat on sales by 4%,” JP Morgan wrote in a note.

Reporting and photo: Reuters