Sales at the world's leading luxury group, LVMH, fell six percent in the first quarter of the year as the war in the Middle East depressed business in the region.
The company, best known for Louis Vuitton handbags, Dior fashion, Moet & Chandon champagne and Tiffany jewellery, registered 19.1 billion euros ($22.4 billion) in sales in January through March.
On an organic basis, excluding exchange rate fluctuations and changes in the business, sales rose by one percent.
The company said the war launched by the United States and Israel on Iran "had a negative impact of around one percent on organic growth for the quarter," but expressed hope that it would make up for lost sales once consumers return to shops.
The Middle East region accounts for around six percent of LVMH's sales.
LVMH, like other luxury groups, has suffered in recent year from the slowdown in growth in China, evoked positive trends there as well as the United States.
The spike in trade tensions between the two countries last year contributed to a five percent slide in LVMH's sales to 80.8 billion euros.
LVMH saw net profits fall 13 percent in 2025 to 10.9 billion euros, mostly due to an exceptional tax on large French companies.
The fashion and leather goods segment, LVMH's biggest, saw sales slide nine percent in the first quarter of 2026 from the same period last year.
It was also the only product segment to contract on an organic basis.
