LVMH third-quarter sales below expectations as fashion and leather division shrinks
PARIS, Oct 12 : France's LVMH on Monday reported worse-than-expected third-quarter organic sales growth as weak demand for its fashion and leather goods weighed.
Organic sales, which strip out currency swings, rose 1 per cent year-on-year to €18.28 billion ($20.40 billion), compared with the 1.3 per cent increase expected by analysts in Visible Alpha consensus. The fashion and leather goods division, which includes flagship brands Louis Vuitton and Dior and generates nearly half of group revenue, posted a 5 per cent fall in organic sales, against an expected 1.8 per cent decline.
The trading update from LVMH - the world's largest luxury group and the first major firm to report third-quarter results - looked likely to further unsettle investors amid fears that the $350 billion luxury sector, mired in a three-year slowdown, will struggle to regain its former momentum.
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