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LVMH Posts 6% Q1 Sales Drop as Middle East Shock and Strong Euro Hit Results

Currency translation wiped out slight underlying growth to sharpen concern about Gulf demand.

Overview

  • LVMH reported first‑quarter revenue of €19.121 billion, down 6% year over year, with comparable sales up 1% and about a 7% hit from exchange rates.
  • The company said the conflict that began on February 28 reduced growth by roughly one percentage point and curtailed high‑end tourist spending.
  • Fashion and leather goods fell 2% organically to €9.247 billion, while perfumes and cosmetics were flat and watches and jewelry, wines and spirits, and selective retail posted gains.
  • Reports from Dubai point to mall traffic down about 30% to 70% and sales plunges of up to 50%, and CFO Cécile Cabanis said demand in the region is still very low.
  • The United States was a rare bright spot with roughly 3% organic growth, while LVMH shares fell after the update and peers such as Kering also slipped as investors reassessed luxury demand.