Geneva, April 19, 2026, 19:47 CEST
- Watches and Wonders Geneva enters its last days for the public, as 65 brands remain on display at Palexpo through April 20.
- The fair takes a hit as fallout from Middle East conflict begins to pinch luxury sales, slow mall foot traffic, and sap airport retail.
- Pressure tied to the Gulf has cropped up for LVMH, Kering, and Hermès, putting demand for luxury watches to the test.
Watches and Wonders Geneva entered its last stretch of public days on Sunday, with brands like Rolex and Patek Philippe unveiling fresh releases. But action outside the halls stole the spotlight: the Middle East conflict is now weighing on one of luxury’s rare dependable growth engines. The event, held at Palexpo, runs from April 14 to April 20 and is open to the public Saturday through Monday, the organizer said.
The Gulf has lately served as a backstop for luxury brands struggling with softer demand out of China and Europe. But in March, Reuters flagged steep sales drops—between 30% and 50%—at Dubai’s Mall of the Emirates. Foot traffic at that location slid 15%. The larger Dubai Mall saw traffic cut roughly in half, while sales at Abu Dhabi’s Galleria slipped about 10%.
LVMH reported that the Iran conflict trimmed at least 1% from group sales last quarter, with Gulf consumer spending slumping and fewer Middle Eastern visitors making purchases in Europe. Chief Financial Officer Cécile Cabanis described demand as “very much down,” noting that mall foot traffic across the region initially plunged by anywhere from 30% to 70%, landing around 50% on average. Reuters
Kering echoed the trend. Gucci’s sales dropped 8% in the first quarter, marking the brand’s eleventh consecutive decline. The company also reported that retail revenue in the Middle East slipped 11%, even after a solid January and February, before the war broke out on February 28. According to finance chief Armelle Poulou, the conflict shaved 3% off Kering’s sales in March and 1% from the entire quarter.
Hermès—often seen as the luxury sector’s fortress—couldn’t dodge the slowdown. Sales grew 5.6% on a currency-adjusted basis, missing the 7.1% analysts had penciled in. In the Middle East, revenue declined 6% to 160 million euros. Finance chief Eric du Halgouet described March as an “abrupt halt,” citing a 40% plunge for the month in luxury malls across Dubai and the Gulf. Reuters
Airports represent another trouble spot. According to Cirium data reported by Reuters, travel retail—covering duty-free and airport shops—took a hit as Middle East flight cancellations soared to 65% on March 3, then dropped back to 13% by March 27. LVMH flagged that its DFS duty-free arm shaved two percentage points off growth in the selective retailing segment, which includes Sephora.
It’s tough timing for watchmakers. Swiss watch exports slipped for a second year in 2025, down 1.7% to 25.6 billion Swiss francs. Shipments by volume dropped 4.8% to 14.6 million, according to the Federation of the Swiss Watch Industry. The United Arab Emirates and Saudi Arabia, which had climbed 3.5% and 8.9% last year, now stand out even more amid the sudden Gulf shakeup.
Despite appearances, the fair hasn’t been suffering from empty halls. Watches and Wonders CEO Mathieu Humair talked about “very few cancellations,” adding that organizers anticipated a “record edition.” But Oliver Müller of LuxeConsult pointed out another pressure: Middle Eastern buyers make up 10% of Swiss watch exports, and he noted a steep slowdown in tourist-driven markets like the UAE. AP News
Brands at Geneva pushed their latest pieces, keeping collectors’ attention fixed on fresh product. WIRED called out Rolex’s Oyster Perpetual “100 Years” Rolesor and the “Jubilee Dial,” plus Patek Philippe’s Celestial Sunrise and Sunset. Tudor’s Black Bay Ceramic, IWC’s Pilot’s Venturer Vertical Drive, TAG Heuer’s Monaco Evergraph and Hermès H08 Skeleton also made the list. Skeletonization, for Hermès, means carving away metal to lay bare the movement. WIRED
Monochrome’s latest fair recap captured a clear divide: smaller-scale cases on one side, technical showpieces on the other. Among the crowd-pleasers, A. Lange & Söhne’s 36mm Saxonia Annual Calendar and Bulgari’s Octo Finissimo Automatic 37 drew attention. The list of staff picks also included Patek Philippe’s limited Nautilus 5610P, TAG Heuer’s Monaco Evergraph, Tudor’s Monarch, and IWC’s Big Pilot Perpetual Calendar ProSet.
The worry is that excitement around the watch doesn’t immediately translate to sales at retail stores, airport kiosks, or tourist hotspots. According to Le Monde, the Middle East makes up about 5% to 6% of the global luxury goods scene. Bernstein, for its part, hadn’t counted on the region bouncing back soon to the 6% to 8% growth rates seen in 2025, following a period where conflict cleared out malls, dented duty-free, and disrupted air connections.
For Rolex, Patek Philippe, and Cartier, it’s more than a matter of dialing up scarcity. The real test: Are the Gulf’s big spenders still on the move—and ready to pay up—even as war, currency swings, and flagging sentiment weigh on luxury?
