Paris (AFP) – The world’s leading luxury group LVMH has suffered in the first quarter from the impact of the war in the Middle East, which significantly reduced its sales in this region, one of the most dynamic for the sector in recent years.
The recovery will have to wait a little longer: the French behemoth (Louis Vuitton, Dior, Moët Hennessy, Tiffany…), one of the top luxury groups, reported sales of 19.1 billion euros from January to March, a 6% decrease compared to last year, below market expectations.
At constant exchange rates and scope, sales increased by 1%, with the conflict costing about one percentage point of growth over the period, the company stated on Monday.
A recent study by Bernstein analysts showed that the Middle East was the most active region in the sector last year, with organic growth rates of 6% to 8%, while the rest of the world was generally stable.
However, LVMH is counting on a return of customers to its stores whose shopping habits have changed. “For now, the final result remains very uncertain,” highlighted Cécile Cabanis, the group’s CFO, during an exchange with analysts on Monday.
“What we know is that wealth has not disappeared; there will be a time when we will likely see it return elsewhere and mitigate the impact if the conflict were to continue.”
– Positive signals –
“In a particularly disrupted geopolitical and economic context due to the conflict in the Middle East, LVMH remains vigilant but nevertheless confident at the beginning of this year,” LVMH emphasized in its statement.
In 2025, the French giant had reported a 13% decline in net profit (10.9 billion euros) with sales down 5% to nearly 81 billion. But despite facing challenges like most luxury companies, including a slowdown in China, the group believes in positive signals.
“The Chinese segment has improved significantly, with local Chinese clientele experiencing solid growth in the first quarter,” stated Cécile Cabanis.
Overall in Asia – excluding Japan – sales saw an organic growth of 7% in the first quarter. The United States, another major luxury market, is also recovering with a 3% growth during this period, while Europe remains in decline (-3%).
The group is also optimistic about its fashion and leather goods division (Louis Vuitton, Dior, Celine, Fendi…), its main activity by far.
Sales in this division reached 9.2 billion euros from January to late March, a 9% decline (-2% excluding exchange rate and scope variations). This marks a slight improvement compared to the last quarter of 2025.
For this branch, LVMH mentioned the success of Jonathan Anderson’s first products, appointed artistic director of Dior last year, with further growth expected. Dior’s sales are significantly improving, according to the group’s CFO, who also noted the resilience of Louis Vuitton. LVMH also applauded the “excellent performance” of the Loro Piana brand in the first quarter.
