Overview
- LVMH, which reported Monday, posted €19.12 billion in Q1 revenue with 1% organic growth and said the Iran‑related war cut about 1 percentage point from that growth as March mall traffic in the Gulf dropped 30% to 70%.
- LVMH’s Fashion and Leather Goods fell 2% organically while watches and jewelry rose 7%, wines and spirits 5%, and selective retailing 4%, with sales up 3% in the US and 7% in Asia outside Japan but down 3% in Europe and Japan.
- Kering, releasing results Tuesday, said Q1 revenue fell 6.2% to €3.57 billion on a reported basis and was flat organically, with Gucci down about 14% reported and 8% organically despite an 8% lift in North America.
- Banks have trimmed 2026 expectations for luxury demand, with HSBC lowering its growth forecast to 5.9%, and sector shares remain under pressure, including LVMH down roughly 25% this year.
- Companies are leaning on new creative direction and flagship openings to revive demand, as seen with Dior’s first Jonathan Anderson pieces and new Louis Vuitton stores, while the Middle East’s small sales share still hurts because its tourist spend is highly profitable.