Arnault flags sales hit

Bernard Arnault said the conflict in the Middle East cut about 1 percentage point from LVMH’s first-quarter 2026 organic sales growth and made short-term forecasting harder. (jckonline.com) (lvmh.com) LVMH reported first-quarter revenue of €19.1 billion on April 13, down 6% as reported and up 1% organically from a year earlier. The group said the Middle East was hit by conflict in March after what it called a very positive start to the year. (lvmh.com) The strongest divisional growth came from watches and jewelry, which rose 7% organically to €2.443 billion. Fashion and leather goods, LVMH’s biggest business, fell 2% organically to €9.247 billion. (lvmh.com) Arnault told shareholders in Paris that a wider regional escalation could become a “world catastrophe” with severe economic consequences. He also said the conflict made the near term “quite unpredictable,” according to trade and business coverage of the meeting. (jckonline.com) Investors reacted badly to the quarter. JCK reported that LVMH shares fell after the results, with the company tying weaker sales to the Iran war and slower spending in Middle East hubs including Dubai. (jckonline.com) The quarter also extended a slower sales run for the luxury group. LVMH posted €20.3 billion in first-quarter 2025 revenue, compared with €19.1 billion in the first quarter of 2026. (lvmh.com 1) (lvmh.com 2) Arnault’s comments also came as LVMH continued to defend Tiffany’s role inside the group after a weaker 2024 for watches and jewelry. JCK reported that the division’s organic sales fell 2% in 2024 and recurring operating profit dropped 28%. (jckonline.com) For now, LVMH is still reporting growth, but only narrowly. Arnault’s message to shareholders was that geopolitics, not just consumer demand, is now shaping the luxury group’s sales outlook quarter by quarter. (lvmh.com) (jckonline.com)