Luxury brands face significant headwinds as Middle East conflict disrupts airport retail. The six-week disruption in West Asia has shuttered key travel-retail hubs, forcing premium beauty and luxury groups to temporarily close airport stores and shift inventory. LVMH reports the crisis is costing two percentage points of growth for its selective retailing division, which includes Sephora, while the conflict shaved at least one percent off group sales last quarter. International flights to and from West Asia plummeted in March, with cancellations reaching sixty-five percent before gradually improving. The travel-retail industry, still recovering from COVID-19, now faces renewed pressure as companies like Estee Lauder, Puig, and L'Oreal lose access to high-margin airport channels that were offsetting weak demand in China and Europe.
