Luxury brands face profits squeeze as Iran conflict shrinks Dubai Mall sales

Sales at Europe’s biggest luxury brands have shrunk in ​Dubai and Abu Dhabi as the Iran conflict hit the sector’s fastest-growing market in the latest setback for the $400 billion industry whose value ‌has contracted over the last three years.

Luxury brands in March reported sales drops of 30-50% at ​the Mall of the Emirates, one of Dubai’s largest, compared to the same month last year, according ⁠to a source with knowledge of the previously unreported figures.

The figures are a gauge of the impact of the conflict on the luxury sector just as LVMH, Kering and Hermes are due to report quarterly sales this week.