Consumer
Luxury Giants Slump as Gulf Demand Seizes Up Due to War
The window display at a Hermes luxury boutique in Paris.
Photographer: Nathan Laine/BloombergSeven weeks of war in the Middle East are stifling demand in the luxury industry with LVMH, Kering and Hermès all reporting weak first-quarter sales.
Shoppers in the Middle East are some of the world’s biggest spenders, splashing out at retail hubs like Dubai and other luxury destinations including Paris and Milan. The lackluster results from three of the most important groups reveals how the impact of grounded flights and disrupted vacations is rippling through the industry.