Hermes shares fell sharply this morning after reporting a drop in sales due to the war in the Middle East, according to major media reports. Share prices for the luxury sector have fallen on the news of Hermes and LVMH results. According to Daily Mail - Money, Emma Wall described luxury goods companies LVMH and Hermes announcing results revealing the stark impact of the Iran war on sales. Hermes share prices sank by as much as 14% in early trading on 15 April following the release of the results.
Hermes sales grew 5.6% in the first three months of the year, according to major media. Hermes saw a decline in revenue as a result of currency fluctuations and the ongoing conflict in the Middle East in Q1 2026. Sales in the Middle East region were down 6% at Hermes. The sales drop particularly impacted the United Arab Emirates, Kuwait, Qatar, and Bahrain, according to Hermes via major media. Hermes in-store sales increased by 7% globally despite the impact on tourism, but wholesale activity was significantly affected due to lower sales to concession stores, especially in the Middle East and airports. Hermes saw strong sales performances in the Americas (+17%), Japan (+10%), and Europe excluding France (+10%), but declines in France (-3%) and the Middle East (-6%) due to reduced tourism linked to the political climate.
Footfall to shopping hubs in the Middle East region has plunged after the outbreak of the war, according to major media. According to Daily Mail - Money, Eric du Halgouet described shops in Italy, Switzerland, and the UK seeing fewer Middle Eastern shoppers. LVMH said the conflict shaved around 1% off sales growth in the first quarter of the year, according to LVMH via major media. This broader luxury sector impact reflects reduced Middle Eastern tourism affecting European shopping hubs.
Shops in Italy, Switzerland, and the UK have seen fewer Middle Eastern shoppers.
Hermes said its bags had helped drive sales despite a downturn in the luxury market since the post-pandemic splurge cooled off, according to Hermes via major media. According to Daily Mail - Money, Axel Dumas described Hermes maintaining its course in a tense geopolitical environment, true to its long-term strategy. The leadership response emphasizes maintaining strategy despite geopolitical challenges.
The war in the Middle East is upending lives and livelihoods in the region and beyond, dimming the outlook for many economies, according to research from five sources. The shock is global but asymmetric, with energy importers, poorer countries, and those with meager buffers more exposed, according to research from five sources. The war has caused serious disruption to the economies of the most directly affected countries, including damage to infrastructure and industries that could become long-lasting, according to research from five sources. Large energy importers in Asia and Europe are bearing the brunt of higher fuel and input costs due to disruptions in the Strait of Hormuz, according to research from five sources. Parts of the Middle East, Africa, Asia-Pacific, and Latin America face higher food and fertilizer prices and tighter financial conditions, according to research from five sources. Low-income countries are especially at risk of food insecurity and may need more external support, according to research from five sources. The war could lead to higher prices and slower growth globally, with effects depending on conflict duration, spread, and damage, according to research from five sources.
The de facto closure of the Strait of Hormuz and damage to regional infrastructure have produced the largest disruption to the global oil market in its history, according to the International Energy Agency. US and Israeli military strikes on Iran have sent global oil and gas markets spiraling, according to research from five sources. Shipments of oil and gas through the Strait of Hormuz are at a standstill due to Iranian threats to tankers, according to research from five sources. Benchmark US crude prices hover near $95 per barrel, a significant rise from prewar levels in the low- to mid-$60/bbl range, according to research from five sources. A disruption in one part of the world (such as the Strait of Hormuz) will lead to a global spike in crude oil prices due to integrated global oil markets, according to research from five sources. About a fifth of the world's oil passes through the Strait of Hormuz – around 20 million barrels each day, according to estimates from the US Energy Information Administration. Oil prices have at points soared to close to $120 per barrel due to strikes on shipping and infrastructure and the effective closure of the Strait of Hormuz, according to research from five sources. This indicates disagreement on the severity of oil price spikes, affecting assessments of economic impact and inflation risks, with some reports citing near $95 per barrel and others noting spikes to $120.
Luxury good companies LVMH and Hermes have announced results revealing the stark impact of the Iran war on sales.
International prices for LNG have jumped more than 50 percent, although this spike has little direct effect on US consumers, according to research from five sources. The energy price spikes reflect varying global impacts, with LNG markets experiencing sharp increases.
Multiple US–Iran conflict scenarios carry materially different risks for global oil infrastructure, transit routes, and prices, according to research from five sources. The Gulf Arab states would be exposed as targets of Iranian retaliation following any US and Israeli action against Iran, according to research from five sources. In a scenario involving direct kinetic attacks between the United States (possibly with Israel) and Iran, including strikes on oil infrastructure, prices would likely experience a significant shock, according to research from five sources. Some bank analysts, including Barclays, see oil prices jumping from the mid-$60s per barrel to the $80 per barrel range in the short term in the event of an attack, according to some bank analysts, including Barclays.
The blockade has led to a global oil shortage which has rocked Gulf-reliant Asian countries hard, according to research from five sources. China uses an estimated 15 to 16 million barrels of oil daily, according to various market analysts. Gulf countries are a major source of the oil China ships in, with barrels from Saudi Arabia and Iran accounting for more than 10% of its imports each, according to the US Energy Information Administration. Russian oil accounts for nearly a fifth of China's energy imports, making Moscow by far Beijing's biggest oil supplier, according to research from five sources.
Hermes maintains its course in a tense geopolitical environment, true to its long-term strategy.
Clean energy technologies are not immune from supply chain disruptions stemming from geopolitical disputes, such as China's restrictions on critical minerals, according to research from five sources. This highlights vulnerabilities in clean energy supply chains.
China is the world's largest coal producer, accounting for more than half of global production, according to research from five sources. Despite this, China's energy position shows dependence on imported oil.
The specific war or conflict being referred to and its exact timeline remain unclear. The direct causal link between the war and sales declines in France for Hermes has not been fully detailed. The total extent of China's oil import reliance on the Middle East and how it's affected by the blockade is uncertain.
The duration and future trajectory of the Strait of Hormuz closure and its long-term economic impacts are unknown. The overall impact on global luxury market sales beyond Hermes and LVMH has not been quantified.
A prolonged conflict could worsen the global economic slowdown and increase pressures on the luxury sector, with broader implications for energy markets and vulnerable nations.