Overview
- Arnault, speaking at LVMH’s annual meeting on Thursday, said the Middle East conflict could spiral into a world catastrophe with severe economic fallout.
- LVMH reported first‑quarter organic sales growth of 1% after the war shaved about 1 percentage point from growth, effectively halving the quarter’s expansion.
- Chief financial officer Cécile Cabanis said demand in parts of the Middle East has fallen by up to 70% since late February, with some malls seeing sales plunge by that much in early March.
- Luxury peers also flagged weaker demand, with Kering and Hermès disappointing investors on first‑quarter results as airport and concession sales fell, especially in the Middle East.
- Arnault said a solution between Iran, the U.S. and Israel could allow growth to resume in the second half of 2026, as a Strait of Hormuz standoff keeps shipping and energy markets under strain.