Luxury bellwether LVMH on Monday reported worse-than-expected third-quarter organic sales growth as demand for its fashion and leather brands, including Louis Vuitton and Dior, deteriorated due to weak Chinese demand.
The trading update from the world's largest luxury group, and the first major sector player to report third-quarter results, is likely to heighten concerns that the $350 billion luxury industry, mired in a three-year slowdown, will struggle to regain momentum.
Organic sales, which strip out currency swings, rose 1% from a year earlier to €18.5 billion ($20.7 billion), missing analysts' expectations for growth of 1.3%, according to a Visible Alpha consensus.
The fashion and leather goods division, which generates nearly half of group revenue, posted a 5% fall in organic sales, against an expected 1.8% decline.
Europe's leading luxury groups have lost around €330 billion in market value since the start of the year, with LVMH alone shedding roughly 40%.