LVMH third — quarter sales below expectations as fashion and leather division shrinks

PARIS, Oct 12 (Reuters) — France's LVMH on Monday reported worse-than-expected third-quarter organic sales growth as weak demand for its fashion and leather goods weighed. Organic sales, which strip out currency swings, rose 1% year-on-year to €18.28 billion ($20.40 billion), compared with the 1.3% increase expected by analysts in Visible Alpha consensus. The fashion and leather goods division, which includes flagship brands Louis Vuitton and Dior and generates nearly half of group revenue, posted a 5% fall in organic sales, against an expected 1.8% decline. The trading update from LVMH — the world's largest luxury group and the first major firm to report third-quarter results — looked likely to further unsettle investors amid fears that the $350 billion luxury sector, mired in a three-year slowdown, will struggle to regain its former momentum. ($1 = 0.8960 euros) (reporting by Tassilo Hummel, editing by Dominique Patton ) ((tassilo.hummel@thomsonreuters.com)