LVMH’s Q1 Sales Sink 6% Amid Middle East Conflict

Paris—LVMH’s Q1 sales fell as it faced a difficult geopolitical environment, including the Middle East conflict, but its jewelry brands continued to show resilience.

In the first quarter, LVMH’s revenue totaled €19.12 billion ($22.48 billion), down 6 percent year-over-year (up 1 percent in organic terms).

Q1 revenue in the watches and jewelry segment was down 2 percent year-over-year (up 7 percent in organic terms) to €2.44 billion ($2.87 billion).

On an earnings call Monday, LVMH CFO Cécile Cabanis and Director of Financial Communications Rodolphe Ozun discussed the top sellers for its jewelry brands, how Saks Global’s bankruptcy affected Q1, and the impact of the Middle East conflict.

“The quarter was impacted by the ongoing conflict in the Middle East, which had a tangible impact on demand in the region in March after a good start to the year,” said Cabanis.

LVMH temporarily closed its stores in the region at the start of the conflict, she added, and demand is still very much down, falling up to 70 percent at certain malls.

The conflict began on Feb. 28 when the U.S. and Israel struck Iran, with thousands of deaths reported in the Middle East region since then, as per Reuters.

The ongoing conflict has taken a toll on tourism, particularly in areas like Dubai.

The LVMH stores located in tourist areas are feeling the brunt of the impact, said Cabanis, while its locations in Saudi Arabia have been more resilient.

“What we have not seen yet is repatriation, and what we know is that the wealth has not evaporated,” said Cabanis, adding that LVMH expects to see some of those sales coming from elsewhere.

The company did not note any disruption to business in the United States as a result of the conflict, but said there would likely be a disruption of tourism in its various regions.

Cabanis noted there was still uncertainty about the scale and outcome of the conflict, and how it would impact LVMH’s business.

Looking to Q1, she said, “I would highlight, for the quarter, a good Chinese New Year, a good response to product innovation, and creative renewal in fashion and leather goods.”

“Saks had some impact in Q1 in the U.S., around $150 million of sales. We are managing that,” she added.

Cabanis noted “an excellent performance for our jewelry maisons.”

During the Q&A portion of the call, she said there have been price increases in the jewelry category, but on specific products rather than an across-the-board increase.

LVMH’s jewelry portfolio is comprised of Bulgari, Chaumet, Repossi, Fred, and Tiffany & Co.

The jewelry brands’ iconic lines, like Tiffany & Co.’s “HardWear” and Bulgari’s “Serpenti,” did especially well, noted Ozun.

Tiffany & Co. had “a very good start to the year, driven by strong momentum in fine jewelry,” he said.

Ozun added that its “HardWear,” “Knot,” and “Sixteen Stone” collections “continue to resonate with consumers and expand rapidly.”

Its high jewelry collections also saw strong growth. The collections were recently shown in Gstaad, Switzerland, and Beijing.

“We are very happy that the transformation of Tiffany is unfolding with success,” said Cabanis.

Tiffany & Co. is continuing to renovate its store network, noting a “tangible outperformance” for its newer stores, including its New York flagship, dubbed “The Landmark.”

“We continue to observe that consumers respond well to creativity and newness in product, but also stores and experiences as demonstrated by an improving conversation rate across our largest brands,” said Cabanis.

Tiffany & Co. also recently debuted its marketing campaign with new global brand ambassador, Natalie Portman.

Bulgari saw strong growth in Q1 as well, said Ozun, noting good momentum across all regions and the “excellent performance” of its “Serpenti” and “Tubogas” lines.

The brand also debuted its new “Eclettica” high jewelry and watch collection.

Its new “Vimini” line was launched in select stores, while its high jewelry watches debuted at LVMH Watch Week.

Bulgari also recently named Dua Lipa and Jake Gyllenhaal as its new brand ambassadors.

Chaumet has continued to expand its “Bee de Chaumet” line, and has partnered with World Wildlife Fund France to support forest biodiversity.

Fred is celebrating its 90th anniversary by adding new pieces to its “Force 10” collection, a unisex jewelry line that combines a braided steel sailing cable and a gold buckle.

LVMH’s watch brand portfolio includes TAG Heuer, Hublot, and Zenith.

TAG Heuer continues to benefit from its Formula 1 partnership during the 2026 season.

Hublot opened a new store in Osaka, Japan, and was named the official watch and timekeeper of The Snow League in Aspen, Colorado.

Zenith, which celebrated its 160th anniversary last year, introduced new models to its “Defy” collection.

Looking at LVMH’s performance by region, the company said it had a good start to the year in the U.S., with sales up 3 percent in organic terms.

Resilient local demand in Europe somewhat offset lower tourist spending, with sales down 3 percent. Asia, excluding Japan, saw strong growth, with sales up 7 percent.

The Middle East region had a strong start to the year, but was then impacted by the conflict in March, with a negative impact of around 1 percent for the quarter.

The U.S. accounted for 23 percent of revenue in Q1, down from 24 percent in the prior year period. 

LVMH did not provide guidance for the year ahead.

It said, “Amid a geopolitical and economic environment particularly disrupted by the conflict in the Middle East, LVMH remains vigilant yet confident at the start of the year.”