LVMH’s first-quarter sales fell 6%, impacted by the Middle East war, though organic growth remained positive at 1% amid a challenging geopolitical climate.
PARIS: Global luxury leader LVMH reported a 6% decline in first-quarter sales, citing a significant impact from the ongoing conflict in the Middle East.
The group, which owns brands like Louis Vuitton and Dior, posted sales of 19.1 billion euros for the period from January through March.
On an organic basis, which excludes currency effects, sales managed a 1% increase.
“LVMH maintained its powerful innovative momentum and showed good resilience in a geopolitical and economic environment that remained disrupted, amplified by the conflict in the Middle East,” the company stated.
It specifically noted that the war “had a negative impact of around one percent on organic growth for the quarter”.
The company expressed hope it could recover lost sales once consumers return to shops in the region.
The conflict severely disrupted air travel and transport through the key Gulf hub, affecting a region that accounts for around 6% of LVMH’s global sales.
The group’s largest division, fashion and leather goods, saw sales slide 9% in the quarter.
This segment was also the only one to contract on an organic basis.
LVMH has faced broader challenges, including a growth slowdown in China and heightened US-China trade tensions last year.
Those tensions contributed to a 5% slide in the group’s full-year sales for 2025.
Net profit for 2025 fell 13% to 10.9 billion euros, largely due to an exceptional tax on large French companies.
