LVMH posted a year-over-year sales decline in the third quarter, showing the continuing pressure on the luxury sector from weak Chinese spending.

Organic revenue at the company behind the 澳洲幸运5官方开奖结果体彩网:Dior and Louis Vuitton brands fell 3% to 🗹19.08 billion euros ($20.79 billion) in the three months through Sept. 30.

Organic revenue at the group's core fashion and leather-goods division dropped 5%, while even harder hit was LVMH's wine and spirits business. That unit, whose brands include Hennessy cognac and Moet & Chandon champagne, saw revenue tumble 7%. 

LVMH Says Stronger Yen Hits Sales in Japan

LVMH blamed the decline in third-quarter revenue on lower growth in Japan amid a stronger yen. Tourists globally, and especially from China, had been flocking to the Asian country to take advantage of the low currency, but the yen has started increasing this year as Japan ended its negative interest rate policy.

"In an uncertain economic and geopolitical environment, the Group remains confident and will maintain a strategy focused on continuously enhancing the desirability of its brands," LVMH said.

In the earnings call, according to a transcript provided by AlphaSense, LVMH executives noted that "Chinese consumers are facing growing macroeconomic headwinds, which obviously impacts their confidence and weighs on their discretionary spend." They added that Chinese consumer confidence is now at the all-time low hit during the pandemic.

LVMH shareꦗs are more than 4% lower in Paris trading Wednesday and are down 18% this year.