""Clearly, we look close and every day on the situation. It has a direct impact on store opening and store performance because there's not many tourists or less tourists shopping." - Daniel Grieder, CEO of Hugo Boss."
""If the war was to end relatively shortly, this would not be a huge issue for the global luxury goods in the states. If the war was to continue, then I think if oil and gas prices were staying high, then I think there would be a higher probability of a recession." - Luca Solca, senior analyst of luxury goods at Bernstein."
The luxury sector in the Middle East is experiencing challenges due to the ongoing war in Iran, with forecasts predicting a 50% drop in luxury sales this month. CEOs from major brands like Hugo Boss, Prada, and Salvatore Ferragamo acknowledge the impact of reduced tourist traffic on store performance. Despite the conflict, the region remains a fast-growing market, contributing 6% to the global luxury market. Analysts suggest that the long-term effects depend on the war's duration and its influence on oil prices and potential recessions.
Read at Fortune
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