STORY: French group Hermes led a slump in luxury shares on Wednesday.
It's after weak sales showed the war in Iran was weighing on demand in the Middle East and tourism in Europe.
It deals a fresh blow to hopes of a revival for the sector.
Shares in the Birkin bag maker sank as much as 14% in early trade.
The widespread impact of the conflict has been felt from Dubai mall sales to soaring energy prices hitting consumer confidence.
Shares in Gucci owner Kering fell more than 9% on Wednesday.
It followed Louis Vuitton owner LVMH which also said on Monday it had suffered a sharp slowdown in the Middle East.
Hermes carefully controls production and sales to maintain exclusivity.
It had been the most resilient luxury group in a years-long industry-wide slowdown.
But even it was not immune to the conflict's impact.
Its shares have dropped 24% far this year.
Luxury stocks have been increasingly volatile as hedge funds have ramped up bets in the sector.
Though only accounting for 4.4% of sales, the Middle East was the fastest-growing region for Hermes last year.
But first quarter sales in the region fell 6% in currency-adjusted terms to $188.59 million.
The strength of the euro has also become a major headache for luxury firms.
:: Hermes
It took $342 million off Hermes' revenue in the quarter, leading to a 1% drop in reported sales.
The U.S. was a bright spot though, with currency-adjusted sales up 17.2%.
