economy
LVMH stock drops as analysts flag luxury recovery 'party postponed' amid Iran war
There was a deterioration of demand in March as a result of the Middle East conflict, said LVMH CFO Cécile Cabanis.
TL;DR
- LVMH reported 1% organic sales growth, missing estimates of 1.5%.
- The Iran war caused a 1% negative impact on sales and a significant demand deterioration in the Middle East.
- Sales declined by 3% in Europe and Japan, while the U.S. saw 3% growth and Asia (excluding Japan) grew 7%.
- The fashion and leather goods division experienced a 2% sales decline.
- Analysts have lowered price targets for LVMH shares, citing the conflict's impact.
- Despite the miss, positive momentum was highlighted for Louis Vuitton and Dior.