LVMH’s core fashion business slides as China demand weakens

LVMH’s fashion and leather goods sales fell 5% in the third quarter on an organic basis, a measure that strips out currency and portfolio changes, as demand weakened in China. The unit includes Louis Vuitton, the group’s biggest brand, and accounts for nearly half of its revenue, so its decline matters more than the headline result. Total organic sales still rose 1%, helped by growth in the US, Europe and Japan, but that missed expectations and the fashion decline was far steeper than analysts anticipated. The unit had returned to growth in the second quarter, so the reversal shows how quickly weaker Chinese spending can unsettle a luxury recovery even when other markets hold up.