Shares of LVMH fell after the luxury giant reported weaker-than-expected sales, with the Iran war weighing on demand, according to analyst and company disclosures.
The company posted 1 percent organic growth for the quarter, missing forecasts, while citing a direct negative impact from the Middle East conflict.
CFO Cécile Cabanis said demand in the region dropped sharply in March, with declines ranging between 30 percent and 70 percent depending on location, as reported by CNBC.
LVMH shares fall after Iran war hits first‑quarter sales https://t.co/vxksepVnJb https://t.co/vxksepVnJb
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Analysts warned that a broader recovery in the luxury sector may be delayed. Bernstein described the rebound as “postponed,” noting that investor confidence remains fragile despite improvements from last year.
While U.S. and Asian markets showed resilience, sales declined in Europe and Japan. The key fashion and leather division also slipped.
According to analysts, ongoing geopolitical uncertainty and disrupted tourism could continue to pressure demand, even as brands like Louis Vuitton and Dior show signs of underlying strength.
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TIPP Staff
