LVMH sales hit by Iran war

The results have heightened investor concerns about the luxury industry's recovery, which had already been hampered by economic headwinds.

LVMH's key fashion and leather goods division underperformed consensus estimates, reflecting a broader shift in consumer sentiment among high-net-worth individuals.

Analysts suggest that the prolonged war and the resulting energy shock are creating a 'tepid' outlook for the sector throughout 2026.

The company is now pivoting its strategy to focus on more resilient markets in Asia and the Americas to offset the Middle Eastern downturn.