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

France-based luxury conglomerate LVMH reported third-quarter sales that fell short of market expectations on October 12th. The company's organic sales growth, which excludes currency fluctuations, came in at 1% year-on-year, reaching €18.28 billion ($20.40 billion). Analysts had projected a 1.3% increase. The fashion and leather segment, comprising renowned brands like Louis Vuitton and Dior and accounting for nearly half of LVMH's revenue, experienced a 5% decline in organic sales, exceeding the anticipated 1.8% drop.

This release, from the world's largest luxury group, may have added to investor concerns surrounding the $350 billion luxury industry, which has been grappling with a prolonged slowdown and faces challenges in regaining its previous growth trajectory.