LVMH reported weaker-than-expected revenue of $22.42 billion for the first quarter of the year, impacted by global disruptions. Sales at its largest division declined as demand for brands like Louis Vuitton and Dior softened.
The company cited the conflict involving Iran as a key factor, estimating a reduction of at least 1% in total group sales during the last quarter due to decreased spending in the Gulf region and fewer tourists in Europe.
Despite these challenges, LVMH noted some improvement in the Chinese market. The luxury sector had previously indicated signs of recovery following a period of sluggish demand.
The ongoing geopolitical and economic environment continues to affect sales growth at the world’s biggest luxury group.