LVMH Q1 sales hit
LVMH reported softer Q1 sales with Fashion & Leather Goods down about 2% and the group said the Iran war shaved at least 1% off total sales. (reuters.com) Asia excluding Japan showed roughly 7% organic growth while Europe contracted about 3%, and sources said Dubai mall sales for luxury brands fell 30–50% in March. ( )
LVMH said the conflict in the Middle East cut into first-quarter sales, puncturing hopes that luxury demand was starting to recover. (lvmh.com; newsbreak.com) The French group reported first-quarter revenue of 19.1 billion euros on April 13, down 6% as reported and up 1% organically. It said the conflict reduced quarterly organic growth by about 1 percentage point. (live.euronext.com) Fashion and Leather Goods, LVMH’s biggest division, fell 2% organically in the quarter after a 3% organic decline in the fourth quarter of 2025. Watches and Jewelry rose 7% organically, Wines and Spirits gained 5%, and Selective Retailing grew 4%. (live.euronext.com; wwd.com) LVMH said the United States had a good start to 2026, while Europe and Japan relied on local shoppers to offset weaker tourist spending. The company also said Asia excluding Japan posted strong growth, extending an improvement that began in the second half of 2025. (live.euronext.com; invezz.com) That regional split points to the problem facing luxury groups in April 2026: Chinese demand has improved, but Gulf spending and Gulf tourism into Europe have weakened at the same time. Reuters reported LVMH is the first major luxury group to post first-quarter sales this season. (newsbreak.com; live.euronext.com) The pressure showed up in Dubai’s malls, a key barometer for luxury demand in the Gulf. Reuters reported March sales for luxury brands at Mall of the Emirates fell 30% to 50% from a year earlier, while footfall there dropped 15%. (money.usnews.com; thehindu.com) LVMH also said exchange rates cut 7% from reported revenue, a much bigger drag than the 1-point hit from the Middle East conflict. That means the quarter was shaped by both geopolitics and currency translation, not by store demand alone. (live.euronext.com; wwd.com) Management said it remained vigilant but confident at the start of the year, pointing to resilient local demand in Europe and Japan and strong momentum in Asia excluding Japan. Investors now have a new baseline for the sector: even LVMH entered April saying war had already taken at least 1 point off growth. (live.euronext.com; newsbreak.com)
