Overview
- Speaking at LVMH’s annual meeting in Paris, Bernard Arnault warned the unresolved Iran conflict could lead to a global economic crisis.
- LVMH said the war shaved about 1 percentage point off first‑quarter organic growth, leaving sales up 1% and effectively halving its growth rate.
- Chief financial officer Cécile Cabanis reported demand drops of up to 70% since late February in travel‑linked channels and Middle East markets.
- Kering and Hermès posted weak first‑quarter results as tourist spending slowed, and Hermès flagged lower sales to concession stores in the Middle East and in airports.
- Arnault said growth could return in the second half of 2026 if a deal between Iran, the U.S. and Israel restores confidence, while analysts warn lost regional spending may not fully shift to other markets.