Despite the conflict with Iran, demand for luxury products in the US has led to an increase in LVMH sales

Luxury giant LVMH’s sales rose slightly in the second quarter as strong demand from high-net-worth American consumers offset slower activity in Europe, where tourism was hit by the war with Iran.

According to Visible Alpha, sales of the company that owns Louis Vuitton, Dior and Moët & Chandon champagne rose 3% adjusted for currency fluctuations. Reaching 19.5 billion euros ($22.2 billion), in line with analyst estimates.

The growth was driven by the United States, where sales rose 6% after a 3% increase in the first quarter, according to LVMH. Which cited strong demand driven by new wealth generated, such as that derived from the rise of AI and technology.

The Watches and Jewelry division was the group’s fastest growing, with an increase in organic sales of 11%, compared to 7% in the previous quarter. Tiffany and Bulgari posted growth of between 15% and 20% as wealthy consumers continued to prefer jewelry over more affordable luxury categories.

“What we have seen is that, despite the continued instability in the macroeconomic environment, trends improved in all regions during the first half and, where wealth is generated, consumer interest in luxury and, in particular, our products, is strong.” said CFO Cecile Cabanis in a conference call with analysts, striking a more optimistic tone than after the more moderate results of the first quarter.