LVMH third-quarter sales below expectations as fashion and leather division shrinks

LVMH, the world's largest luxury group, reported on Monday that its third-quarter sales fell short of expectations. The Paris-based company revealed that its organic sales growth was 1% year-on-year, amounting to €18.28 billion ($20.40 billion), which was lower than the 1.3% increase forecast by analysts. The fashion and leather goods division, a key contributor to the group's revenue, saw a 5% drop in organic sales compared to the anticipated 1.8% decline.

LVMH, which includes iconic brands Louis Vuitton and Dior, is the first major firm to release third-quarter results and its trading update could further unsettle investors due to concerns over the $350 billion luxury sector's sluggishness and the struggle to regain its momentum after a three-year slowdown.