1132 GMT - LVMH's rebound requires a more favorable market environment, analysts at RBC Capital Markets Piral Dadhania and Richard Chamberlain say. The Paris-based group reported an increase in third-quarter group revenue of 1% in organic terms, but sales at its key fashion and leather goods business declined 5%. The company's initiatives to reignite momentum at some of its brands including Dior, Celine, Tiffany and parts of the Louis Vuitton offer, seem encouraging, the analysts write in a note. However, a better economic and demand environment is likely necessary before LVMH can turn a corner, they add. The recovery also calls for a return to positive growth at the core division, the analysts say. RBC Capital Markets confirms its sector-perform rating on the stock. Shares are down 1.6%.