LVMH shares fell by 2% in morning trading in Paris on April 14, 2026, after the company reported a 1% negative impact on first-quarter sales due to the Iran war, overshadowing signs of recovery in the luxury sector [1]. The luxury conglomerate missed sales expectations, with organic growth for the quarter amounting to 1% [1]. LVMH CFO Cécile Cabanis stated that, following the start of the conflict, demand in the Middle East region—which accounts for about 6% of group sales—deteriorated by between 30% and 70% in March, depending on the malls and businesses [1]. Cabanis added that the outcome of the conflict remains uncertain, but noted that wealth in the region has not disappeared and may eventually return, potentially mitigating the impact if the conflict continues [1].
Bernstein analyst Luca Solca described the situation as a 'party postponed,' noting that while results were better than a year ago, this improvement is likely insufficient to convince investors to become more optimistic about the sector [1]. Solca also highlighted that the most important nationalities supporting luxury goods spending—the Chinese and the Americans—are showing improvement and remain strong [1].
Regionally, LVMH reported a 3% decline in organic sales in both Europe and Japan for the quarter, while sales in the U.S. grew by 3% and Asia (excluding Japan) saw a 7% increase [1]. Despite these positive trends in some markets, the overall sentiment remains cautious, with LVMH stock adding to a 27% loss year-to-date [1].
CONCLUSION
LVMH's first-quarter results were overshadowed by the negative impact of the Iran war, leading to a further decline in its share price. While some regions and key consumer groups are showing signs of recovery, uncertainty around the conflict and mixed regional performance continue to weigh on investor sentiment.