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LVMH Q1 Growth Disappoints After Middle East War Saps Demand

A one-point war hit to growth is shaking confidence in a 2026 luxury rebound.

Overview

  • LVMH, which reported first‑quarter results Monday, posted €19.1 billion in revenue with a reported decline of about 6% and 1% organic growth that fell short of forecasts.
  • The company said the Iran‑centered conflict cut roughly one percentage point from organic growth, after March mall traffic in the Gulf fell by 30% to 70% as shoppers and tourists stayed away.
  • Fashion and leather goods fell 2% organically, while watches and jewelry rose 7%, wines and spirits grew 5%, and selective retailing including Sephora increased 4%.
  • Regional demand was uneven, with the U.S. up about 3% and Asia excluding Japan up 7%, while Europe and Japan each slipped roughly 3% as tourist spending weakened.
  • Investor nerves deepened as LVMH shares fell about 25% to 27% this year and Forbes estimated Bernard Arnault’s wealth dropped by nearly $50 billion, while analysts trimmed 2026 luxury growth forecasts, including HSBC to 5.9%.