Iran struggle takes shine of gross sales at LVMH as journey to procuring hubs within the Gulf is disrupted

The war with Iran has hit sales at LVMH, dampening hopes of a revival in the luxury market.

The group, whose brands include Moet, Givenchy and Louis Vuitton, said the conflict shaved around 1 per cent off sales growth in the first quarter of the year.

The war has disrupted travel to shopping hubs in the Gulf, including Dubai, while also hitting demand in Europe from tourists visiting from the Middle East.

Sales at French billionaire Bernard Arnault’s group rose 1 per cent to £16.53billion in the three months to the end of March – missing analyst forecasts for a 1.5 per cent increase. 

Sales at its fashion and leather goods division, the biggest part of the business and home to brands such as Dior, fell 2 per cent to just over £8billon. 

LVMH said its business in the Middle East has been disrupted after ‘a very positive start to the year’. 

Lady in red: LVMH , whose brands include Givenchy (modelled by actress Charlize Theron, pictured) said that the conflict cost it around 1% in sales growth in its first quarter.

It is the first luxury giant to give an insight into how the war has affected its wealthy clientele. Birkin Bag maker Hermes will update investors tomorrow.

LVMH said there were signs that new stores in China are paying off. It said there was ‘strong growth’ in its Asia region, which includes China, and that a new flagship Louis Vuitton store in Beijing has had an ‘excellent performance’.