LVMH shares fall as China woes hit fashion and leather goods sales

(Sharecast News) - Shares in French luxury goods giant LVMH fell on Tuesday after the company reported a decline in third-quarter sales at its flagship fashion and leather goods division, as weaker demand in China weighed on performance.

LVMH, which owns brands including Louis Vuitton, Christian Dior and Celine, posted on Monday evening that organic revenues grew just 1% in the third quarter to �18.5bn, slowing from 3% growth in the previous three months.

Its largest division, fashion and leather goods, saw organic sales fall 5% to �8.25bn, reversing the 1% growth recorded in the second quarter.

LVMH attributed the deterioration to slowing demand in China, although it said the division continued to benefit from a buoyant US market. The group reported good growth in the US, Europe and Japan, helping offset the weaker Chinese performance.

Elsewhere, watches and jewellery sales rose 6% organically in the quarter, while selective retailing, which includes Sephora, grew 8%. Wines and spirits also recorded 6% growth, while perfumes and cosmetics edged up 1%.

For the first nine months of 2026, group revenue totalled �57.1bn, down 2% on a reported basis but up 2% organically.

Looking ahead, LVMH said it remained confident despite the uncertain economic and geopolitical environment, and would continue focusing on enhancing the desirability of its brands and strengthening its position in the global luxury market.

By 1154 BST, LVMH shares were down 1.7% at �377.80.