Finance
LVMH's CEO Arnault Says Return to Growth Hinges on Outcome of Middle East Crisis
Published by Global Banking & Finance Review®
Posted on April 23, 2026
2 min readLast updated: April 23, 2026
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LVMH CEO Bernard Arnault warns that the luxury group’s return to growth critically depends on the resolution of the Middle East crisis, citing a roughly 1 pp drag on first‑quarter sales due to the Iran conflict and steep declines in Gulf tourism and mall traffic.
LVMH's Arnault: Growth Hopes Rest on Middle East Crisis Resolution
Impact of Middle East Crisis on LVMH's Recovery Prospects
PARIS, April 23 (Reuters) - Recovery hopes for the French luxury giant LVMH LVMH.PA hinge on the outcome of the crisis in the Middle East, CEO and controlling shareholder Bernard Arnault said on Thursday.
Arnault's Remarks at Shareholder Meeting
"You will have noticed that the world is now in a very serious crisis in the Middle East," Arnault said at the company's annual shareholder meeting in Paris, adding: "It all depends on how this crisis unfolds".
Shareholder Concerns and Market Outlook
LVMH shareholders are set to face yet another bumpy year as the crisis in the Middle East dampened market hopes for a luxury sector recovery after close to three years of stagnation.
Financial Impact and Sales Performance
Earlier this month, the group said the Iran war shaved at least 1% off its total group sales in the first quarter and reduced tourist flows to Europe.
Potential for Growth Amid Uncertainty
Addressing shareholders on Thursday, Arnault said that LVMH can return to growth across its divisions if the Middle East conflict gets resolved quickly.
Should the crisis spiral into a "global catastrophe", Arnault said it was impossible to predict the outcome.
Geopolitical Developments and Ceasefire Status
The status of a two-week-old ceasefire, due to have expired earlier this week, remained unclear on Thursday.
Iran seized two ships in the Strait of Hormuz as it tightened its grip on the strategic waterway after U.S. President Donald Trump announced he was indefinitely calling off attacks, with no sign of peace talks restarting.
LVMH Share Performance
Shares in LVMH, the biggest luxury group by sales, are down 26% since the start of the year, and 3% lower than their level at the group's last shareholder meeting a year ago.
(Reporting by Tassilo Hummel, Dominique Vidalon, editing by Inti Landauro)
Key Takeaways
- •Arnault stressed at the April 23 annual meeting in Paris that LVMH’s recovery hinges on how the Middle East conflict unfolds, with risks of a global catastrophe if the situation deteriorates further (investing.com).
- •LVMH said the Iran war shaved about 1 percentage point off group sales in Q1 2026, particularly due to plunging demand in the Gulf and reduced tourist flows to Europe (investing.com).
- •Mall foot traffic in key luxury hubs like Dubai fell by 30–50%, with some outlets seeing declines up to 70%; LVMH’s shares have dropped ~26–27 % year‑to‑date amid these headwinds (investing.com).
References
Frequently Asked Questions about LVMH's CEO Arnault says return to growth hinges on outcome of Middle East crisis
1How has the Middle East crisis affected LVMH's sales?
The Middle East crisis has reduced LVMH's group sales by at least 1% in the first quarter and decreased tourist flows to Europe.
2What does LVMH's CEO say about the company's growth prospects?
CEO Bernard Arnault stated that LVMH's return to growth depends on a quick resolution of the Middle East conflict.
3How have LVMH's shares performed recently?
LVMH shares are down 26% since the start of the year and 3% lower compared to the previous annual meeting.
4What impact could a prolonged Middle East crisis have on LVMH?
A prolonged or escalating crisis could make the outcome for LVMH impossible to predict, affecting all divisions.
5Where did Bernard Arnault make his statements about LVMH's future?
Bernard Arnault addressed shareholders at LVMH's annual meeting in Paris.
