European fashion stocks decline amidst Middle East conflict

Madrid – Major European fashion companies are holding their breath, waiting to see how markets and their shares will evolve following the outbreak of the new military conflict between the US and Israel against Iran. The war has unleashed instability in the Persian Gulf region. This has been fraught with uncertainty since last Saturday, which spread to the markets on Monday.

In the fashion industry specifically, the performance of major global listed companies on Monday, March 2, seems to accurately predict the expected economic impact of the conflict in the Gulf region, varying by geography. On one hand, European fashion companies, without distinction - from mass-market players to luxury and sportswear specialists, saw their shares fall between 4 percent and over 6 percent during the trading session. On the other hand, US fashion appears to be discounting any significant impact on its operations from the outbreak of war in Iran.

The reason for this disparity in performance between fashion companies on either side of the Atlantic lies in the commercial tensions that instability in the Gulf region is placing on the sector's value chains. These supply networks will affect shipments from Asia and India to the Middle East, the Mediterranean and the East Coast of the US. This was clearly demonstrated by logistics company Maersk's decision to divert its vessels from the Strait of Hormuz and the Suez Canal to the Cape of Good Hope.

The US, however, is expected to remain shielded from the turmoil in the Gulf, caused by its own and Israel's military, by leveraging its “bi-continental protection”. This geostrategic advantage, combined with the increasing adoption of nearshoring by US companies and the country's energy independence (or semi-independence) from Gulf oil, is enabling major North American fashion firms to mitigate the conflict's effects. The conflict does not affect the maritime routes connecting the country to production centres in Asia via the Pacific Ocean.

From flat closing for US companies Tapestry, On and Gap to Puma's -6.23 percent fall

Breaking down how the conflict in Iran has begun to affect the share values of major listed fashion companies, the sector's performance last Monday was uneven. The spectrum ranged from a slight increase in the shares of US-based Tapestry (+0.61 percent) to a sharp fall for Germany's Puma (-6.23 percent). Notable cases in between include the flat closing of Swiss company On (+0.60 percent), which is US-listed; the declines of Spain's Puig (-4.09 percent) and Inditex (-4.78 percent); the drops of France's Hermès (-4 percent), LVMH (-4.34 percent) and Kering (-5 percent); and the fall of Capri Holdings (-5.07 percent). Capri Holdings experienced the largest drop for a US company due to its particular exposure to European and Asian markets.

Stock market performance of major listed fashion companies, March 2, 2026

Tapestry, 155.47 - 156.42 dollars (+0.61 percent)
On Holding, 46.48 - 46.76 dollars (+0.60 percent)
Gap, 28.04 - 28.15 dollars (+0.39 percent)
Nike, 61.77 - 61.01 dollars (-1.23 percent)
Prada, 43.68 - 43.10 Hong Kong dollars (-1.32 percent)
H&M, 192.70 - 185.50 Swedish kronor (-3.73 percent)
Hermès, 2,049 - 1,967 euros (-4 percent)
Salvatore Ferragamo, 6.75 - 6.48 euros (-4 percent)
Puig, 16.36 - 15.69 euros (-4.09 percent)
Adidas, 158.20 - 151.35 euros (-4.33 percent)
Burberry, 1,163 - 1,112.50 pence (-4.34 percent)
LVMH, 544.10 - 520.50 euros (-4.34 percent)
Fast Retailing (Uniqlo), 67,750 - 64,770 euros (-4.39 percent)
Zalando, 20.75 - 19.83 euros (-4.43 percent)
Inditex, 56.82 - 54.10 euros (-4.78 percent)
Kering, 285.90 - 271.50 euros (-5 percent)
Capri Holdings 20.51 - 19.47 dollars (-5.07 percent)
Richemont, 157.25 - 148.25 Swiss francs (-5.72 percent)
Puma, 23.76 - 22.28 euros (-6.23 percent)

This article was translated to English using an AI tool.

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