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French luxury conglomerate LVMH has announced that geopolitical turmoil in the Middle East has significantly affected its sales.
LVMH's global sales rose only 1% last quarter, missing the 1.5% forecast.
KEY POINTS
- Military conflict in the Middle East reduced LVMH's total group sales by about 1%.
- Mall sales in Dubai dropped by up to 50% during the conflict, sharply reducing consumer traffic.
- Middle Eastern markets, though 6% of turnover, have a disproportionately high impact on LVMH's profit margins.
- LVMH reported a 3% decline in European sales, citing the strong euro and regional warfare.
COMPANIES
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