Sales at the world’s leading French luxury goods group LVMH fell by six percent in the first quarter of the year. The reason for this was the war in the Middle East, which affected business in the region.
The company, best known for Louis Vuitton handbags, Dior fashion, Moët & Chandon champagne and Tiffany jewelry, reported sales of 19.1 billion euros from January to March. On an organic basis, i.e. without taking into account exchange rate fluctuations and business changes, sales increased by one percent.
“LVMH has maintained strong innovation momentum and demonstrated good resilience in a continued disrupted geopolitical and economic environment, exacerbated by the conflict in the Middle East,” the company said in a statement. The company said the war waged by the United States and Israel against Iran had “a negative impact of approximately 1 percent on organic growth for the quarter.” However, it expressed hope that it would be able to make up for lost sales once consumers return to stores.
The conflict, which saw Iran launch missile and drone attacks on its Gulf neighbors, severely affected air traffic in the region. The region is an important hub for long-haul flights between Europe and Asia. In addition, the transport of oil and gas through the Strait of Hormuz was disrupted. The Middle East region accounts for about six percent of LVMH’s sales.
Decline in sales of fashion and leather goods
LVMH, like other luxury groups, has suffered from slowing growth in China in recent years. However, the company pointed to positive trends there and in the United States. The rise in trade tensions between the two countries contributed to a five percent decline in sales to 80.8 billion euros at LVMH last year.
LVMH’s net profit fell by 13 percent to 10.9 billion euros in 2025. This was mainly due to a special tax on large French companies.
In the fashion and leather goods segment, LVMH’s largest, sales fell by nine percent in the first quarter of 2026 compared to the same period last year. It was also the only product segment to shrink on an organic basis.
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