French luxury giant LVMH has reported a decline in first-quarter sales, citing the impact of ongoing conflict in the Middle East on its business operations. The company recorded revenues of €19.1 billion ($22.4 billion) between January and March, marking a 6% drop compared t
French luxury giant LVMH has reported a decline in first-quarter sales, citing the impact of ongoing conflict in the Middle East on its business operations.
The company recorded revenues of €19.1 billion ($22.4 billion) between January and March, marking a 6% drop compared to the same period last year. However, when adjusted for currency fluctuations and structural changes, sales showed a modest 1% increase.
LVMH, known for brands such as Louis Vuitton, Dior, Moët & Chandon, and Tiffany & Co., said the geopolitical situation has disrupted consumer activity, particularly in the Middle East, which contributes around 6% of its global sales.
The company noted that the conflict — involving military tensions between the United States, Israel, and Iran — has affected travel and regional commerce, with disruptions to key routes and supply chains further impacting business performance.
Despite these challenges, LVMH highlighted its resilience, stating that it continues to maintain strong innovation and expects a recovery in demand once conditions stabilize and consumer activity resumes.
The group also pointed to improving trends in major markets such as the United States and China, after experiencing slower growth in recent years due to economic pressures and trade tensions.
Among its divisions, the fashion and leather goods segment — the company’s largest — saw the sharpest decline, with sales falling 9% during the quarter, making it the only segment to record an organic decrease.
LVMH’s latest results reflect the broader pressures facing the global luxury market amid geopolitical uncertainty and shifting economic conditions.
