Louis Vuitton takes a hit from 2026 Iran War; quarterly results fall short of expectations

Financial News.

French luxury conglomerate LVMH Moët Hennessy Louis Vuitton (LVMH) has also been hit by the fallout from the 2026 Iran War. The first-quarter results it released on the 13th (local time) fell short of expectations.
However, signs of recovery have begun to emerge in China.
According to CNBC, first-quarter earnings at LVMH, seen as a bellwether for the luxury sector, came in below market forecasts.
Quarterly revenue rose 1% from a year earlier, but that was weaker than the 1.5% growth the market had expected. LVMH explained that the 2026 Iran War had a negative impact on its sales growth.
LVMH stated, "Geopolitical and economic turmoil has intensified due to the conflict in the Middle East."
Revenue in the fashion and leather goods division, which includes Louis Vuitton and Christian Dior, fell by 2%.
By contrast, the watches and jewelry division, which includes Tiffany & Co., grew 7%, while revenue from wines and spirits increased 5%.
The Middle East luxury market still accounts for only a single-digit share of total sales, but the energy crisis triggered by the closure of the Strait of Hormuz, together with inflation and global uncertainty, has made consumers tighten their purse strings and is weighing on results.
The 2026 Iran War is a particularly heavy blow because the Middle East had been one of the few remaining growth engines for the luxury industry.
LVMH added that Asia excluding Japan has been showing strong growth, and that the group has been on a recovery path since the second half of last year.
Italy-based cashmere brand Brunello Cucinelli, which released its results last week, also said that the Chinese market has been recovering since the fourth quarter of last year, raising expectations for a broader rebound in the luxury sector.


dympna@fnnews.com Song Kyung-jae Reporter