LVMH continues to struggle due to weakness in China

French luxury giant LVMH, the parent company of Louis Vuitton and Dior, also reported disappointing sales growth in the third quarter, due to weak demand from China. Is this a sign of a further slowdown in the luxury sector, which has been facing headwinds for three years now?

Chinese consumers lose confidence

LVMH reported organic revenue growth of 1% year-over-year, resulting in total revenue of 18.5 billion euros. The fashion and leather goods division, which accounts for nearly half of total revenue, actually saw its organic revenue decline by 5%.