LVMH CEO Arnault warns of 'world catastrophe' if Middle East conflict is not resolved

bernard arnault, ceo of lvmh, told shareholders thursday that the middle east conflict could lead to a "world catastrophe" if not resolved. he spoke at the company's annual general meeting in paris. organic sales at the world's largest luxury company grew just 1% in the first quarter. the middle east conflict had a 1% negative impact on that growth, effectively halving it. arnault said if a solution is reached between iran, the u.s. and israel, he expects a return to growth in the second half of this year. mckinsey senior partner gemma d'auria told cnbc the region was a "hot spot for growth" but that clients are now seeing a "double whammy" of declining consumer sentiment, traffic, and spend. it's unclear whether middle east clients shopping elsewhere will compensate for the drop in regional traffic.