Hermes, Gucci Hit as Middle East Tensions Scare Luxury Shoppers

Shares in Hermes have fallen to a three-year low. The French luxury giant, famous for its high-priced handbags, is seeing weaker sales in the Middle East and Asia. The decline is linked to a drop in tourist spending. Industry analysts point to rising geopolitical tensions in the Middle East as a key reason fewer wealthy tourists are shopping. Rival brands are facing the same problem. Italy's Gucci owner, Kering, reported similar weak sales for the first quarter of the year. This shows the issue is affecting the wider luxury sector. When global tensions rise, the spending habits of the ultra-wealthy can change quickly. Luxury brands are now watching to see if this trend continues.