"LVMH CEO, the 'luxury industry leader', worries about global consumption: Middle East war may evolve into a 'global disaster'"

```

The head of the world's largest luxury goods group, LVMH, has issued a stern warning: if the Middle East war continues to spread, it could trigger a global economic disaster.

On April 23, according to the Financial Times, LVMH CEO Bernard Arnault stated at the group's annual shareholders meeting that if the war between the US and Israel against Iran does not end soon, LVMH will face a severe crisis.

He warned that the situation could evolve into "a global disaster, bringing extremely serious and very negative economic consequences." This is one of the strongest public statements so far from a top executive of a global luxury goods company regarding the Middle East conflict.

This warning is not without basis. Last week, LVMH disclosed that the Middle East war has already caused about a one percentage point loss in organic sales growth in the first quarter of this year; organic sales growth for the quarter was only 1%.

Meanwhile, LVMH's stock price has fallen by 26% so far this year, and competitor groups Kering, Hermès, and Richemont have all seen double-digit drops, indicating the luxury sector is under significant pressure.

Impact of War: From Middle Eastern Stores to Global Consumer Confidence

The impact of the Middle East conflict on LVMH is supported by concrete data.

According to reports, shortly after the outbreak of the war in early March this year, LVMH's sales in some Middle Eastern shopping malls plunged by as much as 70%. This figure vividly showcases the destructive power of regional conflict on high-end consumption scenarios.

Arnault pointed out that the situation in the Middle East is "extremely difficult to predict," and this uncertainty is dragging down global consumer confidence, thereby delaying the long-awaited demand rebound for the luxury industry after years of stagnation.

He said that if the situation is resolved quickly, LVMH's full lineup of businesses—including fashion, handbags, hotels, and high-end spirits—may achieve overall growth this year; "otherwise, we will have to face a crisis."

LVMH's predicament reflects the situation of the entire luxury industry. Analysts point out that after years of weak demand, the market originally expected a cyclical recovery in 2025–2026, but the ongoing Middle East war is disrupting this rhythm.

Risk Warning and DisclaimerThe market involves risk, and investment must be made cautiously. This article does not constitute personal investment advice, nor does it take into account the special investment goals, financial status, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific circumstances. Those who invest accordingly do so at their own risk. ```