Key facts
- Fashion and leather goods sales fell 5%, missing forecasts.
- Asia sales, excluding Japan, declined 5% in the quarter.
- Dior was a top performer in the fashion and leather goods division, with flat sales in the third quarter.
LVMH Group's key fashion and leather goods division experienced a 5 percent organic sales decline in the third quarter, reversing earlier recovery momentum and falling short of analyst expectations. The slowdown was largely attributed to subdued demand in China, exacerbated by a Chinese tax crackdown on wealthy individuals and a nationalistic backlash following a trademark dispute involving Louis Vuitton. Overall group revenues saw a modest 1 percent increase to 18.5 billion euros. Sales in Asia, excluding Japan, decreased by 5 percent, while Japan's growth slowed. The U.S. market maintained its momentum with 5 percent growth, and Europe saw an acceleration.