PARIS–Bernard Arnaultwarned on Thursday that the conflict in the Middle East could spell “catastrophe” for the world economy this year unless a rapid resolution is found.
Speaking atLVMH Moët Hennessy Louis Vuitton’s annual general meeting in Paris, the French luxury group’s chairman and chief executive officer said it was impossible to make near-term forecasts due to the uncertain outcome of peace talks between the United States and Iran.
“It all depends on how this crisis plays out. Either it will be a global catastrophe, so to speak, with extremely serious and highly negative economic impacts, and if that’s the case, who can say how 2026 will unfold?” he said.
“Or it will be resolved more quickly somehow, as we all hope — even if it doesn’t look easy. And in that case, business will gradually return to normal. At any rate, it’s quite unpredictable. If the second scenario is confirmed, I think growth in our various activities will resume. If not, we will be faced with a crisis. It won’t be the first, and chances are we will continue to gain market share, as we did in 2025,” he added.
LVMH reported revenues in the first quarterfell 5.9 percenton a reported basis and rose 1 percent in organic terms as the Middle East conflict capsized a “positive start to the year” in that luxury-loving region, which accounts for roughly 6 percent of its business. The war had a negative 1 percent impact on group organic growth.
Faced with near-term volatility, the luxury magnate said he prefers to look further ahead, underlining that as a family-run group, LVMH always plans for the next few decades.
“What excites, motivates and entertains me is what the group will look like, and how will it be positioned, in five years’ time,” he explained. “I think we’re very well placed to remain by far the leader in the luxury sector.”
He touted strong uptake for Jonathan Anderson’sfirst collectionas creative director of Dior, the jewel in the crown of the LVMH empire, which groups around 75 brands, including Louis Vuitton, Sephora, Moët & Chandon and Tiffany & Co.
“It’s off to a flying start, so much so that we’re having trouble delivering products because demand is so high,” Arnault said.
Meanwhile, he said there is a waiting list “in the thousands” for Vuitton’s P9 bag, launched by creative director of menswear Pharrell Williams. The brand recently launched adedicated advertising campaignfor the style, featuring the personal items inside the bags of brand ambassadors including Jeremy Allen White, LeBron James and Jackson Wang.
Source: Drudge Report
