Paris (AFP) – The world’s top luxury group LVMH suffered in the first quarter due to the impact of the war in the Middle East, which significantly reduced its sales in this dynamic region that has been one of the most important for the sector in recent years.
The expected recovery will have to wait a bit longer: the French powerhouse (Louis Vuitton, Dior, Moët Hennessy, Tiffany…), one of the leading luxury groups, reported sales of €19.1 billion from January to March, a 6% decrease compared to last year, below market expectations.
At constant exchange rates and perimeter, sales increased by 1%, with the conflict reducing growth by around one percentage point during the period, the company stated on Monday.
According to a recent study by Bernstein analysts, the Middle East was the most active region in the sector last year, with organic growth rates ranging from 6% to 8%, while the rest of the world was generally stable.
However, LVMH is optimistic about customers returning to stores despite altered spending patterns. “For now, the final outcome remains very uncertain,” highlighted Cécile Cabanis, the group’s chief financial officer, in an exchange with analysts on Monday.
“What we know is that wealth has not disappeared; there will be a moment when we will likely see it return elsewhere and mitigate the impact if the conflict continues.”
– Positive Signals –
“In a particularly disrupted geopolitical and economic context due to the conflict in the Middle East, LVMH remains cautious but confident at the beginning of the year,” stated LVMH in its press release.
In 2025, the French giant reported a 13% decline in net profit (€10.9 billion) with a 5% decrease in sales, reaching nearly €81 billion. Despite challenges faced by most luxury sector companies, including a slowdown in China, the group perceives positive signals.
“The Chinese sector has improved significantly, with local Chinese clientele recording strong growth in the first quarter,” affirmed Cécile Cabanis.
More broadly, sales in Asia excluding Japan saw organic growth of 7% in the first quarter. The United States, another major luxury market, also experienced growth of 3% during this period, while Europe continued to decline by 3%.
The group is also optimistic about its fashion and leather goods division (Louis Vuitton, Dior, Celine, Fendi…), its main activity.
Sales in this sector reached €9.2 billion from January to the end of March, representing a 9% decline (2% excluding currency and perimeter variations). This marks a slight improvement compared to the last quarter of 2025.
For this branch, LVMH highlighted the success of Jonathan Anderson’s first products as Dior’s artistic director last year, with further acceleration expected. Dior sales are showing significant improvement, according to the group’s CFO, who also noted the resilience of Louis Vuitton. LVMH also praised the “excellent performance” of the Loro Piana brand in the first quarter.
AFP/RP
