Shares of Louis Vuitton (LVMH) fall nearly 30% over the quarter, marking the company’s worst performance since 1989. The decline is driven by weakening demand in key luxury markets, particularly Dubai, amid disruptions linked to the Iran conflict and broader regional instability.
The downturn stands out historically, with losses exceeding those recorded during the 2008–2009 global financial crisis. Analysts attribute the sharp move to a combination of reduced tourism flows, lower discretionary spending, and declining retail activity in the Middle East, a critical region for high-end luxury consumption.
Other luxury-linked stocks also face pressure. Ferrari sees its shares decline as logistical disruptions impact deliveries and sales performance. The broader sector reaction highlights how geopolitical tensions and supply chain challenges are increasingly affecting even premium brands.
Analysts say the selloff reflects heightened sensitivity of luxury stocks to global macro conditions. As uncertainty persists, investors reassess growth expectations and margins across the high-end consumer segment.