LVMH sales hit as Iran war weighs on demand

Shares in LVMH are expected to open lower after the company reported weaker first-quarter sales, with the ongoing Iran war weighing on demand and global consumer sentiment.

The world’s largest luxury group said the conflict reduced quarterly sales by at least 1%, bringing revenue to €19.12 billion ($22.49 billion). The company was the first major luxury brand to report results this earnings season, making its performance a key indicator for the broader sector, News.Az reports, citing Reuters.

Analysts warn the results could pressure other luxury companies with exposure to Middle Eastern consumers and tourism flows, as investors reassess demand trends across key markets.

Market attention is now focused on whether the conflict will continue to disrupt travel patterns, weaken consumer confidence, and slow spending on high-end goods.

Citi analyst Thomas Chauvet noted that the biggest uncertainty lies in how the conflict will affect macroeconomic conditions and international tourism, both of which are crucial drivers of luxury sales.

On trading platforms, LVMH shares were already down around 2.4% ahead of the market open, reflecting investor concerns about short-term demand pressure in the sector.

The update sets the tone for upcoming earnings from other major luxury groups, as the industry navigates a more uncertain global environment shaped by geopolitical tensions and shifting consumer behavior.

News.Az 

By Aysel Mammadzada