Luxury sales slump
Luxury groups entered first‑quarter earnings week under pressure after a sharp stock drop and steep regional sales declines in Gulf markets. Vogue reported LVMH shares plunged 28% in the first quarter, signaling investor concern heading into results (vogue.com). Reuters and Business of Fashion cited regional retail pain—Mall of the Emirates saw sales fall 30–50% in March with footfall down about 15%, and Dubai Mall traffic fell roughly 50%—as a major headwind for European luxury’s growth story ( ).
Europe’s biggest luxury groups entered earnings week with investors already braced for weaker demand after LVMH shares fell 28 percent in the first quarter. (vogue.com) LVMH scheduled its first-quarter 2026 revenue release for Monday, April 13, after the Paris market close, with a webcast set for 6 p.m. Paris time. The group said it generated 80.8 billion euros in 2025 sales and operates more than 6,280 stores worldwide. (lvmh.com) The pressure is not just in the stock. Reuters reported on April 13 that sales at Dubai’s Mall of the Emirates fell 30 percent to 50 percent in March, while footfall dropped about 15 percent, and traffic at Dubai Mall fell roughly 50 percent. (reuters.com) Business of Fashion reported the same March slump at Mall of the Emirates and tied it to a broader hit to luxury retail in the Gulf, a region that had helped offset slower spending elsewhere. (businessoffashion.com) That matters for brands such as Louis Vuitton, Dior and Gucci because high-end fashion depends heavily on tourist traffic, mall footfall and shoppers willing to buy big-ticket items on trips. Bloomberg reported that the Middle East war clouded the global outlook and intensified demand headwinds for luxury goods in the first quarter. (bloomberg.com) The market reaction has been unusually sharp. Bloomberg said LVMH’s 28 percent first-quarter drop was its worst start to a year on record, worse than the group’s first-quarter performances during the 2008 financial crisis, the 2020 pandemic shock and the 2001 dot-com downturn. (bloomberg.com) The earnings calendar now puts the rest of the sector under the same microscope. Business of Fashion said first-quarter sales at LVMH, Kering and Hermès would test whether luxury’s turnaround efforts are translating into actual demand. (businessoffashion.com) There are still pockets of resilience. Business of Fashion reported on April 11 that Hermès opened its 25th leather-goods plant in France and kept plans to raise output despite the weaker mood in luxury demand. (businessoffashion.com) The immediate question is whether first-quarter results show a temporary shock centered on Gulf travel and shopping, or a deeper slowdown spreading across luxury’s global customer base. LVMH’s numbers on April 13 are the first big readout. (lvmh.com)
