Overview
- LVMH reported 1% organic sales growth for the quarter, missing forecasts, and said the conflict in the Middle East shaved about 1 percentage point off growth as revenue reached 19.1 billion euros.
- Its fashion and leather goods unit, which includes Louis Vuitton and Dior, declined on an organic basis even as the company cited a stronger start in the U.S. and early improvement in China.
- LVMH linked weaker demand to disrupted long-haul travel through Middle East hubs and oil shipping snarls in the Strait of Hormuz, which cut high-spend tourism and curbed shopper confidence.
- Analysts have lowered expectations, with HSBC now forecasting a 5% decline in 2026 luxury sales in the Middle East and trimming its global sector growth outlook to 5.9%.
- The picture remains uneven across brands, as luxury shares have fallen since the Iran war began and Brunello Cucinelli bucked the trend with a 14% Q1 sales jump led by the U.S. and Asia.