LVMH flags Q1 pressure
LVMH reported first‑quarter group revenue of €19.1 billion, up 1%, but said fashion and leather‑goods sales fell amid disruption tied to the Iran war. The group described the situation as one of vigilance as regional conflict has already affected sales and supply lines. (drapersonline.com)
LVMH said the Middle East war cut into first-quarter sales, interrupting what had been a stronger start to 2026. (lvmh.com) The French luxury group reported first-quarter revenue of €19.1 billion on April 13, with organic growth of 1% and reported sales down 6% because of currency moves. The company said the conflict reduced quarterly organic growth by about 1 percentage point. (lvmh.com)) The biggest drag came from fashion and leather goods, LVMH’s largest division, where sales fell 2% on an organic basis to €9.247 billion. That unit includes Louis Vuitton, Dior and Fendi, and it is the group’s main profit engine. (lvmh.com) (cnbc.com) The update landed as investors were looking for signs that luxury demand was recovering after more than two years of weaker spending, especially in China. Analysts surveyed by FactSet had expected 1.5% organic growth for the quarter, not 1%. (cnbc.com) LVMH said the United States had a good start to the year, and Asia excluding Japan posted strong growth that extended an improvement that began in the second half of 2025. In Europe and Japan, local shoppers helped offset weaker tourist spending. (lvmh.com) (cnbc.com) Finance chief Cécile Cabanis said demand in the Middle East remained sharply lower after the disruption that followed the start of the war in late February. Reuters reported that mall traffic in Dubai initially dropped by 30% to 70%, with 50% cited as an average. (wdez.com) That matters for LVMH because the Middle East accounts for about 6% of group turnover, and Cabanis said the region is especially profitable. Reuters also reported that fewer tourists in Europe added to the weakness. (wdez.com) Other divisions held up better. Wines and spirits grew 5% organically, watches and jewelry rose 7%, and selective retailing, which includes Sephora, increased 4%. (lvmh.com) The fashion and leather goods decline was the seventh straight quarterly drop for that division, according to Reuters, even as LVMH said most categories and regions were improving once the war impact was stripped out. The company’s first-quarter report is likely to shape expectations for the rest of the luxury sector because LVMH is the first major group to report. (wdez.com) LVMH told investors it was staying watchful in a quarter when exchange rates cut reported sales by 7% and conflict disrupted shopping and supply lines. For a company with 75 brands and €80.8 billion in 2025 revenue, the question now is whether stronger demand in the United States and Asia can outlast the shock from the Middle East. (lvmh.com 1) (lvmh.com 2)
