00:00Major luxury stocks including LVMH, Hermes and Ferrari have dropped 15 to 20 percent since the Iran war began,
00:09far outpacing the broader S&P 500's decline of under 6 percent,
00:14as companies like Ferrari and Bentley halt Middle East deliveries entirely.
00:19The region has been a critical growth engine for the industry,
00:22and a worst-case scenario of sales dropping by half could shave roughly one percentage point
00:27of quarterly growth for major brands.
00:30However, analysts note that the damage may be contained,
00:33as luxury companies are privately reaching out to top clients and wealthy buyers
00:38who fled the region and may simply spend elsewhere,
00:41leading one analyst to say that if the disruption is limited to March,
00:45it could ultimately be a non-event.
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