Investing.com -- European luxury stocks fell Tuesday after LVMH reported weaker-than-expected sales at its fashion and leather goods division, where a deterioration in Chinese demand for Louis Vuitton raised fresh doubts about the sector's recovery.
By 09:09 GMT, LVMH shares fell 1.6%. Hermes lost 2.4%, Kering 2%, Moncler 1.5%, Dior 1.4% and Richemont 1.1%.
LVMH on Monday said organic sales at the division, which generates nearly half of group revenue, fell 5%, missing a Visible Alpha consensus for a 1.8% decline. The company said a "less buoyant environment" in China weighed on results.
Group organic sales rose 1%, excluding currency swings, to €18.5 billion ($20.68 billion), below expectations for 1.3% growth. For the first nine months, revenue was €57.1 billion, down 2% as reported and up 2% organically.
Growth in the watches and jewelry division, home to Bulgari and Tiffany, also slowed to 6% from 9% in the first half, a change in one of luxury's few bright spots.
Not finding the right stocks? Our AI's list of investor-grade stock picks for October just dropped »
When asked about Louis Vuitton's recovery prospects, LVMH Chief Financial Officer Cecile Cabanis said: "It takes a bit of time, but I don't think there are a lot of shortcuts here."
Selective retailing was the strongest division, with organic growth of 8%, as Sephora gained market share in several countries, helped by exclusive launches including Rhode, and entered Belgium and Croatia.
Wines and spirits rose 6% organically, as champagne continued to recover, particularly in Europe, and Hennessy cognac saw good momentum in Asia.
Perfumes and cosmetics grew 1%, helped by launches including Dior's J'adore Intense and Sauvage Extrait.
Europe's leading luxury groups, mired in a three-year slowdown, have lost about €330 billion in market value since the start of the year, with LVMH alone down roughly 40%.
Original Article
Luxury stocks slide after LVMH's weak fashion sales spark recovery doubts
Global chip selloff deepens as AI worries, China competition weigh
