Paris – The global luxury number one LVMH has suffered in the first quarter from the impact of the Middle East war, which has significantly reduced its sales in this region, one of the most dynamic for the sector in recent years.
The awaited recovery will have to wait a bit longer: the French juggernaut (Louis Vuitton, Dior, Moët Hennessy, Tiffany…), one of the leading luxury groups to publish its first quarter sales, recorded 19.1 billion euros in revenue from January to March, a figure down 6% year-over-year, below market expectations.
At constant exchange rates and perimeter, sales increased by 1%, with the conflict cutting about one percentage point of growth over the period, the company said on Monday.
According to a recent study by analysts from Bernstein, the Middle East represented the most active region in the sector last year, with organic growth (comparable data) ranging from 6% to 8%, while the rest of the world was generally stable.
However, LVMH is counting on a return of customers to the stores whose purchases were different. “For now, the final result remains very uncertain,” emphasized Cécile Cabanis, the group’s financial director, during an exchange with analysts on Monday.
“What we know is that wealth has not vanished; so there will be a moment when we will probably see it return elsewhere and reduce the impact if the conflict continues.”
– Positive signals –
“In a geopolitical and economic context particularly disrupted by the conflict in the Middle East, LVMH remains vigilant but nevertheless confident at the beginning of the year,” LVMH argued in its press release.
In 2025, the French giant had published a net profit down 13% (10.9 billion euros) for sales falling by 5% to nearly 81 billion. But the group, which suffered – like most companies in the luxury sector – from several factors, including a slowdown in China, wants to believe in positive signals.
“The Chinese segment has improved significantly, with local Chinese customers recording solid growth in the first quarter,” emphasized Cécile Cabanis.
More broadly, in Asia – excluding Japan – sales saw organic growth of 7% in the first quarter. The United States, another major luxury market, is also recovering, with a 3% growth over this period, while Europe remains down by 3%.
The group also sees positive signals for its fashion and leather goods division (Louis Vuitton, Dior, Celine, Fendi…), by far its main activity.
Sales for these reached 9.2 billion euros from January to the end of March, a decrease of 9% (-2% excluding variations in exchange rates and perimeter). This represents a slight improvement compared to the last quarter of 2025.
For this branch, LVMH reported on the success of Jonathan Anderson’s first products, who was appointed artistic director of Dior last year, with further acceleration to come. Dior’s sales are significantly improving, according to the group’s financial director, who also noted the resilience of Louis Vuitton. LVMH also praised the “excellent performance” of the Loro Piana brand in the first quarter.
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