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Luxury · LVMH · Middle East · Sales
French luxury giant LVMH, owner of Louis Vuitton and Dior, reported a significant sales miss, with global quarterly sales rising only 1% adjusted for currency swings, falling short of analyst estimates of a 1.5% rise, directly impacted by the Middle Eastern conflict.
The military conflict between Iran and Israeli-U.S. forces caused a 1% negative impact on total group sales, even before accounting for indirect effects like reduced tourism. Sales in the Gulf region saw a sharp decline, and wealthy tourists from the area reduced their spending in Europe.
Reuters reported that mall sales in Dubai fell by as much as 50% since the war's start, with LVMH confirming sharply reduced mall traffic. While the Middle East represents 6% of LVMH's turnover, the impact on profit margins will be higher due to the region's exceptional profitability.
European sales also decreased by 3%, primarily due to the conflict and a strong euro.
LVMH Sales Miss: Middle East Conflict Dims Luxury Hopes(current)
