PARIS, Jan 29 (Reuters) - Shares in luxury conglomerate LVMHLVMH.PA were down in early trade on Wednesday, after the company's end-of-year report disappointed investors hoping for stronger signs of rebound from the sector bellwether.

LVMH late Tuesday reported a 1% rise in fourth-quarter sales, beating expectations, but its margin was weighed down by several non-recurring events, increased staff costs linked to LVMH's role in the Paris 2024 Olympics and an employee share scheme.

LVMH shares opened down 4% while Gucci-owner Kering opened down 4.7%. Hermes, which is seen as best-placed to weather downturns thanks to a wealthier customer base, was down 1%.

The luxury goods sector has been grappling with its slowest sales in years, falling by 2% last year, according to Bain & Company estimates, hit by a property crisis in China.

But recent expectation-beating results from firms including Cartier owner RichemontCFR.S and Burberry BRBY.L have fuelled hopes the sector is starting the year on firmer ground.

While the results "challenge the sector narrative that all luxury companies have seen the acceleration" seen at Richemont and Burberry, it reinforces the idea of a quicker recovery this year than expected in October, analysts at Deutsche Bank said in a note to clients.

Luxury shares, which have been volatile since the winding down of a post-pandemic boom, have risen since the start of 2025, with Richemont up 25%, LVMH up 18% and Hermes up 15%.

(Reporting by Mimosa Spencer; editing by Jason Neely)

((Mimosa.Spencer@thomsonreuters.com;))