Hermes International Societe en commandite par actions

LVMH Moet Hennessy - Louis Vuitton, Societe Europeenne

Kering SA

Burberry Group plc

The big three luxury companies - LVMH, Hermès and Kering - released their first quarter reports this week, showing a decline in revenue due to the war in the Middle East

"It could all come back in 24 hours": what does the luxury sector expect after the $176 billion collapse?

Shares of luxury companies fell sharply in early trading on Wednesday, April 15, after Hermès, and the day before - the owner of Gucci, <a href="https://oninvest.com/article/prodazi-gucci-upali-na-8-na-fone-vojny-eto-vtoroj-signal-trevogi-dla-sektora-luksa">Kering</a>, reported for the first quarter worse than investors' expectations. Sales of luxury goods are under pressure from the conflict in the Middle East, <a href="https://www.cnbc.com/2026/04/15/kering-stock-q1-earnings-gucci-sales-iran-war-middle-east-luxury.html">writes</a> CNBC. Analysts warn that the recovery of the sector may take longer and be weaker than market expectations.

Luxury stocks fell after weak Hermès reporting amid war in the Middle East

Shares in luxury giant LVMH fell more than 2% in Paris trading on April 14 after it <a href="https://oninvest.com/article/prodazi-lvmh-upali-sil-nee-ozidanij-iz-za-vojny-cto-eto-znacit-dla-sektora-luksa">revealed</a> how much the U.S.-Iran war has affected sales. It is the first major luxury company to show how the Middle East crisis has affected demand, The Wall Street Journal <a href="https://www.wsj.com/livecoverage/stock-market-today-dow-sp-500-nasdaq-04-14-2026/card/impact-of-war-on-louis-vuitton-s-owner-may-not-be-as-bad-as-it-looks-LZjNizNFJiJFZF1LY5wP?mod=lctimeline_finance">noted</a>.

'Holiday postponed': LVMH shares fall after weak quarter in Middle East

The conflict reduced organic revenue growth for the owner of Louis Vuitton and Dior by about 1 percentage point

LVMH sales fell more than expected because of the war. What does this mean for the luxury sector?

Sales of European luxury brands in Dubai and Abu Dhabi shopping centers fell significantly last month amid the conflict with Iran, which has hit one of the fastest-growing regional markets in the global luxury industry, totaling about $400 billion, Reuters <a href="https://www.reuters.com/world/middle-east/luxury-brands-face-profits-squeeze-iran-conflict-shrinks-dubai-mall-sales-2026-04-13/">reported,</a> citing industry sources.

Sales of luxury brands in Dubai malls fell 50% in first month of war - Reuters

JPMorgan Chase & Co.

Taiwan Semiconductor Manufacturing Company Limited

Netflix, Inc.

The war in Iran will remain in the center of investors' attention this week. The <a href="https://oninvest.com/article/tramp-prikazal-blokirovat-ormuzskij-proliv-posle-provala-peregovorov-s-iranom">failure of</a> Washington and Tehran's attempt to negotiate peace last weekend triggered a new <a href="https://oninvest.com/article/neft-podorozala-na-8-f-ucersy-na-akcii-upali-posle-provala-peregovorov-ssa-i-irana">spike</a> in oil prices. The U.S. accused the Iranian regime of being unwilling to curb its nuclear program, while Iran demanded control of the key oil artery, the Strait of Hormuz, payment of war reparations, a cease-fire throughout the Middle East region, including Lebanon, and the unblocking of frozen overseas assets, Trading Economics <a href="https://tradingeconomics.com/commodity/crude-oil#:~:text=Talks%20held%20in%20Pakistan%20failed%20to%20produce%20an%20agreement%2C%20with%20the%20US%20accusing%20Tehran%20of%20refusing%20to%20curb%20its%20nuclear%20ambitions%2C%20while%20Iran%20reportedly%20sought%20control%20of%20the%20strait%2C%20war%20reparations%2C%20a%20broader%20regional%20ceasefire%20(including%20Lebanon)%2C%20and%20access%20to%20frozen%20overseas%20assets.">reported</a>. After peace talks between the parties in Pakistan ended in nothing, US President Donald Trump <a href="https://oninvest.com/article/tramp-prikazal-blokirovat-ormuzskij-proliv-posle-provala-peregovorov-s-iranom">ordered the</a> blocking of the strait, which Iran is <a href="https://oninvest.com/article/iran-sozdal-tenevoj-punkt-propuska-sudov-cerez-ormuzskij-proliv-i-zastavlaet-platit">forcing</a> ships to pay for passing through.

The Middle East, bank earnings and Netflix: what investors need to know this week

Compagnie Financiere Richemont SA

Deutsche Bank has allowed a rapid recovery of the European luxury sector in the event of an easing of the conflict in the Middle East, <a href="https://www.cnbc.com/2026/04/02/luxury-stocks-lvmh-kering-gucci-middle-east-iran-conflict.html">writes</a> CNBC. The bank is confident that the current drawdown is temporary and reflects external shocks rather than the fundamental deterioration of companies' business.

Lux companies face 'sharp reversal' in case of de-escalation in Iran - Deutsche Bank

Falling demand for branded accessories amid global uncertainty has hit the capital of the empire of France's richest family, the Arnault family

"Confidence barometer": LVMH shares posted their worst-ever quarterly results

EssilorLuxottica Societe anonyme

Ferrari N.V.

Brunello Cucinelli S.p.A.

Ermenegildo Zegna N.V.

The recovery in luxury sector stocks, which the market had been waiting for before the US and Israel's war with Iran, is likely to happen after all, according to investment bank UBS. It said there were buying opportunities in the sagging sector despite "significant investor anxiety" over the conflict in the Middle East. The bank recommended taking a closer look at the securities of the owner of Louis Vuitton and six other manufacturers.

"Luxury's 'Magnificent Seven': UBS names stocks worth buying on the downturn

Volkswagen AG

Stellantis N.V.

Sales of luxury brands in the Middle East could halve in March, which could reduce quarterly growth for many companies in the sector, according to Bernstein

War with Iran has deprived the luxury sector of $100 billion in capitalization

Prada S.p.A.

The US-Israeli war with Iran has created a crisis for luxury brands in Dubai, according to analysts at Bernstein Research. According to their forecast, sales of luxury goods in the Middle East in March may halve due to a sharp drop in the number of foreign tourists, The New York Times <a href="http://www.nytimes.com/2026/03/19/business/dubai-luxury-shopping-iran-war.html">reports</a>.

Dubai crisis: how the war in the Middle East will affect luxury sales

The Middle East is not the largest but an important market for the industry