UPDATE 1 — Market turns cold on luxury after LVMH's China letdown

(Updates with detail on sales numbers, outlook, comments throughout; changes media identifier, previous LVMH MOET-STOCKS/) Oct 13 (Reuters) — LVMH's weaker-than-expected quarterly fashion and leather goods sales, hit by a deterioration in Chinese consumer demand for its flagship Louis Vuitton brand, have raised fresh doubts about the luxury industry's recovery prospects. Four sell-side analysts have cut their target price on LVMH shares by an average 9% following the results, the first quarterly report by a major sector player, expecting the miss to also signal weak performance at some of its competitors. LVMH shares were down 1.5% by 0730 GMT. Its peers Hermes, Kering and Richemont were down by a similar degree. Europe's leading luxury groups, mired in a three-year slowdown, have lost around €330 billion in market value since the start of the year, with LVMH alone shedding roughly 40%. "Despite the recent share price weakness, we expect some further pressure on the space as a whole today, with confirmation that the Chinese cluster seems to have taken a material (and bigger than feared) step down", JPMorgan analysts said in a note to clients. Recovery To Take Time, Cfo Says LVMH on