{"id":461,"date":"2026-04-23T21:36:21","date_gmt":"2026-04-23T13:36:21","guid":{"rendered":"https:\/\/galan.net.cn\/?p=461"},"modified":"2026-08-16T08:14:12","modified_gmt":"2026-08-16T00:14:12","slug":"%e4%b8%ad%e4%b8%9c%e4%b8%80%e6%89%93%e4%bb%97%ef%bc%8clv%e4%b9%9f%e5%8d%96%e4%b8%8d%e5%8a%a8%e4%ba%86%ef%bc%9flvmh%e4%b8%80%e5%ad%a3%e5%ba%a6%e8%b4%a2%e6%8a%a5%e6%8f%ad%e5%bc%80%e6%ae%8b%e9%85%b7","status":"publish","type":"post","link":"https:\/\/www.galan.ltd\/?p=461","title":{"rendered":"When war breaks out in the Middle East, does LV’s sales suffer? LVMH’s first-quarter financial report reveals a harsh truth"},"content":{"rendered":"
What does the war in the Middle East have to do with luxury goods?<\/section>\n
You might have thought it didn’t matter before. But the first quarter financial report just released by LVMH Group tells you: it matters a lot.<\/section>\n
On April 13th, LVMH announced its Q1 2026 results. Sales amounted to 19.12 billion euros, with organic growth of only 1%, falling short of the 2% expected by analysts.<\/section>\n
Even more heart-wrenching is that the group’s Chief Financial Officer, C\u00e9cile Cabanis, directly stated: “If it weren’t for the impact of the conflict in the Middle East, global fashion sales in March would have been roughly flat.<\/section>\n
This conflict directly caused a loss of about 1% in LVMH’s total organic revenue growth in the first quarter.<\/section>\n
\"When<\/section>\n
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PART 01<\/p>\n<\/section>\n

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The Middle East accounts for 6% of LVMH’s sales, and local demand plummeted by 30% to 70% in March<\/section>\n<\/section>\n
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Many people don’t know that the Middle East has been a “hidden growth point” for the luxury goods industry in recent years. Places like Dubai and Doha are not only shopping paradises for the rich but also hubs for long-distance travel around the world.<\/section>\n
But once conflict arises, everything falls apart.<\/section>\n
Cabanis revealed that the Middle East accounts for 6% of LVMH’s sales, with a higher proportion in the fashion and leather goods sector. Throughout March, consumer demand for local brands fell by 30% to 70%.<\/section>\n
The specific decrease depends on the mall and business type of the brand. But no matter what, it’s a cliff-like drop.<\/section>\n
What’s more troublesome is that this lost demand has not been “picked up” by other regions. The United States grew by 3%, Asia (excluding Japan) grew by 7%, while Europe and Japan actually fell by 3% respectively.<\/section>\n
In other words: When the Middle East is at war, the whole world pays the bill.<\/section>\n
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PART 02<\/p>\n<\/section>\n

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The fashion and leather goods division declined by 2%, but it was better than last year<\/section>\n<\/section>\n
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Looking at specific divisions: LVMH’s core fashion and leather goods division saw sales decline by 2% to \u20ac9.25 billion.<\/section>\n
Doesn’t sound optimistic? But compared to a 3% decline in the fourth quarter of 2025, it’s actually improving.<\/section>\n

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The CFO specifically mentioned several brands:<\/section>\n