Tensions in the Middle East are having a significant impact on LVMH’s figures. The French luxury giant closed the first quarter of 2026 with revenue of €19.1 billion, representing a 6% decline at constant exchange rates and 1% organic growth. The Fashion & Leather Goods division posted its seventh consecutive quarter of declining revenue. The United States stood out, along with an improvement in the Chinese market.

LVMH’s Quarter

According to LVMH, “the conflict in the Middle East had a negative impact of approximately 1% on organic growth for the quarter”. However, it is also important to consider that many wealthy tourists from that region have also stopped spending in Europe. “In a particularly turbulent geopolitical and economic environment due to the conflict in the Middle East, LVMH begins the year with a vigilant yet confident outlook”, the French group writes in its financial statement. The 1% organic growth recorded by LVMH in the first quarter of 2026 is slightly below analysts’ estimates. The forecast was for a 1.5% increase, according to a Visible Alpha consensus cited by Reuters.

Fashion & Leather Goods Still Declining

Revenue for the Fashion & Leather Goods division, which accounted for half of total revenue, was €10.11 billion, down 9% at constant exchange rates and down 2% on an organic basis, slightly worse than analysts’ estimates, which had forecast a 1% decline. This was the division’s seventh consecutive quarter of declining revenue. According to LVMH, the performance of flagship brands Louis Vuitton and Dior is in line with the division as a whole.

Geographies

Geographically speaking, the U.S. got off to a strong start this year. In Europe and Japan, robust domestic demand helped offset, at least in part, the decline in tourism spending. Asia (excluding Japan) posted strong growth, confirming the improving trends observed since the second half of 2025.