According to LVMH, the war in Iran has affected its sales
The French luxury conglomerate LVMH declared that the conflict in Iran caused the group’s overall sales to drop by at least 1% during the most recent quarter. This fall was attributed to a decrease in tourists in the Gulf region as well as a decline in travel in Europe.
Investor fears on the impact of the Gulf crisis on the fledgling recovery of the $400 billion luxury market are expected to be heightened by the news from LVMH. The first big luxury company to publish its first-quarter sales. Gucci’s owner, Kering, saw a 1.5% decline in shares, while LVMH, a U.S.-traded company, saw a 3.75% decline.
The company, which includes brands like Louis Vuitton, Dior, Bulgari jewelry, and Hennessy, had a 1% gain in global quarterly revenue after accounting for currency fluctuations. This was just less than the 1.5% growth predicted by analysts, according to the Visible Alpha consensus.
According to Cecile Cabanis, the group’s chief financial officer. There hasn’t been much improvement in the Middle East since the war’s initial major disruption of shopping complexes. «Demand is still very low today.»
According to Cecile Cabanis, the group’s chief financial officer, there hasn’t been much improvement in the Middle East since the war’s initial major disruption of shopping complexes. «Demand is still very low today.»
According to Reuters, since the most recent Middle East conflict was ignited by Israeli and American operations against Iran in late February. Sales in Dubai’s shopping centers have dropped by as much as 50%. Sales of luxury vehicles are also under jeopardy.
After more than two years of standstill, the majority of analysts continue to predict growth for the luxury market in 2026, including LVMH. Disregarding the effects of the conflict, LVMH said that the majority of categories and areas, including China, had improved.
One of the worst-performing large-cap firms in Europe, the company is led and owned by billionaire Bernard Arnault. Since the beginning of the year, its shares have dropped by 26%.
