Middle East conflict weighs on LVMH’s figures

Luxury brands have seen their sales in the Middle East decline since March as a result of the war with Iran. LVMH has managed to partially offset this setback with stronger performance in China and the U.S.

1% negative impact

LVMH, the owner of luxury brands such as Louis Vuitton, Tiffany, Christian Dior, Veuve Clicquot, and Sephora, reported revenue of 19.1 billion euros for the first quarter of its fiscal year, a 6% decline, but a 1% increase at constant exchange rates. Revenue from the fashion division, the group’s largest segment, fell by 2%. Organic growth was recorded for watches and jewelry (+7%), wine and spirits (+5%), and selective retail (+4%). Perfumes and cosmetics remained stable.