LVMH post 1% revenue growth in Q1 amidst Iran conflict

Global luxury leader LVMH saw a 1% increase in revenue in the first three months of 2026. The conflict in Iran cost the company one percentage point of growth.

As the first luxury group to report its activity at the beginning of the year, LVMH (Louis Vuitton, Dior, Moët Hennessy, Guerlain, Sephora, etc.) announced a significant increase in its revenue after a 1% decline last year. In the first quarter, sales rose by 1% to €19.1 billion. This notable resilience comes “in a still disrupted geopolitical and economic context,” noted the company in a statement.

Following positive signs of recovery at the end of last year, particularly in Asia, the escalation of the Israeli-American offensive in Iran in late February added a new obstacle to the scenario of a more pronounced recovery in the luxury sector, after two challenging years.

In this area accounting for 6% of the group’s revenue (and 8 to 10% in the overall luxury market), the impact was felt on both local and tourist clientele, the engine of the Middle Eastern luxury market in recent years. “The conflict weighed around 1% on the organic growth for the quarter,” according to LVMH. While its main Fashion and Leather Goods activity (50% of the business) led by Louis Vuitton experienced a similar impact, declining by 2% in the period, its Watches and Jewelry division surged by 7%.

LVMH remains “vigilant but nevertheless confident.” These results, habitual indicators of the luxury sector’s health, are closely watched by markets to assess the lasting impact of geopolitical tensions on the luxury market. Reflecting their fragility on the matter, LVMH’s stock has fallen by 25% since the beginning of the year, as has that of Hermès (-17%) and Kering (-9%).