LVMH Fashion Sales Fall 5% Amid China Slump

LVMH’s fashion and leather goods division, including Louis Vuitton and Dior, saw organic sales fall 5% in the third quarter, a sharper decline than analysts expected and a reversal of the prior quarter’s return to growth. The company attributed the weakness largely to softer demand in China, while sales grew in the United States, Europe and Japan. Group organic revenue rose 1% to about €18.5 billion, supported by growth in jewelry and selective retailing, including Sephora. The results add to concerns that the prolonged luxury-sector slowdown will persist, with China’s tax crackdown on wealthy consumers and backlash over Louis Vuitton’s trademark dispute among the headwinds cited.