Middle East hostilities sapped LVMH's first‑quarter sales, which rose just 1% on a like‑for‑like basis to €19.1bn, falling short of analyst forecasts. The war in Israel and the U.S. curbed spending in the region, dragging the fashion and leather goods division down 2% to €9.24bn, marking its seventh straight quarter of decline.

Missile strikes on the Gulf shaved three points off March growth, leaving Q1 expansion 1 point shy of forecasts. CFO Cécile Cabanis said some malls saw sales tumble 70 per cent in early March, yet wealth remains. The Middle East accounts for 5% of luxury sales, but a prolonged war threatens confidence. LVMH’s shares have fallen 25% YTD, with its US listing down 4% after the report.

European and Japanese markets each slipped 3% in Q1, failing to offset weaker tourist spend. Outside Japan, Asian sales rose 7%, delivering LVMH’s strongest quarter since 2023. US revenue climbed 3%, while watches and jewellery, led by Tiffany and Bvlgari, posted 7% growth. Fresh talent at Dior and Celine is generating a “good response,” CFO Cabanis said. LVMH’s earnings hinge on redirecting Middle‑East wealth to markets.