French luxury giant LVMH reported a 3% fall in third-quarter sales on Tuesday, its first decline in quarterly sales since the pandemic, as rising prices and economic uncertainty held back shoppers.
Revenue for the world's biggest luxury group was 19.08 billion euros ($20.8 billion) for the three months ending in September, a 3% fall on an organic basis, stripping out the effect of currencies, acquisitions and divestitures.
The figure missed a consensus estimate of 2% organic growth, according to Barclays.
The numbers will offer little reassurance to jittery investors who already had low expectations for the quarter.
The fashion and leather goods division, home to Louis Vuitton and Dior labels, reported a decline of 5%, well below consensus expectations for 4% growth, and the first decline for the business since 2020 during the height of the pandemic.
Fashion and leather goods comprise almost half of LVMH revenue and nearly three-quarters of its recurring profit.
Investors have grown nervous about the luxury goods sector since a post-pandemic spending spree lost momentum last year, with Chinese appetite for high end fashion a major source of concern. The country's property crisis has weighed on shoppers' confidence, and hopes that government stimulus measures could quickly reignite enthusiasm for high-end merchandise have yet to be fulfilled.
UBS has predicted that the third quarter will be the worst for the sector in four years, with a 1% decline in organic sales year-on-year.
