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Lower sales of spirits and handbags hit LVMH growth

World’s biggest luxury group says it remains confident despite ‘uncertain’ environment

Sales growth at luxury conglomerate LVMH slowed in the third quarter, as demand for handbags moderated and that for spirits fell after several years of stellar growth.

The French group, controlled by Bernard Arnault, said sales grew 9 per cent in the third quarter to €19.9bn, down from a 17 per cent rise in the preceding quarter, reflecting softer luxury sales worldwide, notably in the US and Europe.

Sales in Asia excluding Japan grew at 11 per cent in the quarter, down from 34 per cent in the previous three months, while the US continued the trend of low single-digit growth from earlier in the year as aspirational consumers pulled back on spending. In Europe, most countries were now growing in the mid single-digit range, according to LVMH chief financial officer Jean-Jacques Guiony.

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