Louis Vuitton, Dior owner LVMH flags sales impact of Iran war in blow to hopes for luxury revival

PARIS: French luxury giant LVMH suffered a heavy impact from the Middle Eastern conflict, it said on Monday, as sales fell in the Gulf and many rich tourists from the region ‌also stopped ⁠spending ⁠in Europe.

Global quarterly sales at the owner of brands including Louis Vuitton and Dior, Bulgari jewellery and Hennessy, rose by 1% when adjusted for currency swings, slightly below analyst estimates of a 1.5% rise, according to ⁠a Visible ‌Alpha consensus.

But the military conflict ​between Iran ​and Israeli-U.S. forces led to a ⁠negative impact of around 1% on ​total group sales, even before accounting ​for indirect effects such as lower tourism elsewhere, LVMH said.


Reuters reported that mall sales in Dubai fell by as much as 50% since the start of ‌the war. LVMH said mall traffic was down sharply, adding that while ​the region ​represents 6% ⁠of LVMH's turnover, the impact on profit margins will likely be higher due to the region's exceptional ​profitability.

The conflict also weighed on sales in Europe, which were down 3%, mainly due to the war and the strong euro, LVMH said.