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The paradigm shift is taking hold in the luxury sector<\/b>.<\/p>\n
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Even before the release of LVMH\u2019s first-quarter 2026 results, analysts were warning of the end of double-digit growth<\/b> for the luxury sector as it had been experienced from 2016 to 2021.<\/p>\n
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On April 13 after the market closed, LVMH announced first-quarter 2026 revenue of \u20ac19.9 billion, down 6% on a reported basis<\/b> and up 1% on a like-for-like basis.<\/p>\n
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As the first luxury player to release its 2026 results, Bernard Arnault\u2019s group demonstrated remarkable resilience amid a turbulent geopolitical landscape<\/b>. It was not spared, however: its core business, the Fashion and Leather Goods division<\/b>, washard hit<\/b>, with a 9% decline on a reported basis.<\/p>\n
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In addition to an increasingly pronounced preference for experiential luxury and second-hand goods\u2014which is affecting many players in the sector\u2014LVMH is grappling with an unfavorable currency effect<\/b> (-7%) as well as severe tensions in the Middle East<\/b>. The conflict in Iran<\/b>, which has been ongoing since February 28, is estimated to have cost one percentage point of growth for the luxury leader<\/b>, thereby offsetting the positive effects of the restructuring of Christian Dior Couture.<\/p>\n
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A providential growth driver in 2024 and 2025 amid China\u2019s slow recalibration, the Middle East is now directly impacted by the war in Iran.<\/strong><\/b><\/p>\n <\/p>\n According to statements from LVMH<\/b>, which currently generates 6% of its revenue in the region<\/b> (compared to 8\u201310% for the global luxury market), the conflict has already cost the company one percentage point of growth,<\/b> and this is even before taking into account indirect effects such as the decline in tourism.<\/p>\n <\/span><\/p>\n <\/span><\/p>\n \t\t