Luxury Sector: 1% hit to Q1 sales expected as Middle East ‘airport doors’ close

try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Trump vows to “bomb the hell out of the shoreline” to reopen Hormuz Goldman warns S&P 500 could decline to 6300 if growth weakens AI winners and losers: This sector is seen as ’a clear beneficiary’ Morgan Stanley says Fed risks are skewed towards later and more cuts (South Africa Philippines Nigeria) Luxury Sector: 1% hit to Q1 sales expected as Middle East ‘airport doors’ close By Author Simon Mugo Economy Published 03/15/2026, 01:24 AM Luxury Sector: 1% hit to Q1 sales expected as Middle East ‘airport doors’ close 0 CFR -2.44% LVMH -4.30% PRTP -2.76% HRMS -1.47% SFER 1.19% MONC -0.72% Investing.com -- Global luxury giants are bracing for a localized sales slump following the escalation of conflict in the Middle East, though analysts suggest the primary damage to valuations may already be accounted for. Get more insights by upgrading to InvestingPro - up to 50% discount now According to a deep-dive report from Bernstein, the region has evolved into a critical growth engine, now rivaling Japan in importance, accounting for approximately 6% of total sector sales. The impact of the regional instability is expected to hit the largest conglomerates hardest. Bernstein estimates that LVMH Moet Hennessy Louis Vuitton SE (EPA:LVMH) , Compagnie Financiere Richemont SA (SIX:CFR) , and Kering SA (EPA:PRTP) carry the highest exposure, with the Middle East representing roughly 8% of their total sales. In contrast, brands like Hermès , Moncler SpA (BIT:MONC) , and Salvatore Ferragamo SpA (BIT:SFER) maintain a more insulated profile with the smallest footprints in the region. While "airport doors" remain largely closed, impacting about 9% of the retail network, the sector is leaning on its high-net-worth individual client base. In a trend reminiscent of the COVID-19 era, sales assistants have pivoted to "outreach activity," engaging wealthy locals who are "sitting at home with little else to do but shop". Bernstein projects...