1101 GMT - LVMH's weak results suggest greater caution is needed when determining the timing of a rebound following a prolonged slowdown in demand for luxury goods, AlphaValue's Jie Zhang writes in a research note. The luxury-sector bellwether booked a 5% organic decline in revenue at its key fashion and leather goods business, which remains the main disappointment, the analyst says. The company attributed the deterioration mainly to softer Chinese demand amid economic pressures. "Given the division's central role in group profitability, the sales performance offers limited reassurance for earnings," she says. "Our expectations for the pace of recovery proved too optimistic," Zhang adds. The stock trades 1.5% lower.
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