LVMH Quarterly Revenue Trails Estimates as Fashion Growth Slows

PARIS, France — LVMH Moet Hennessy Louis Vuitton SA, the world's largest luxury-products maker, reported third-quarter revenue that trailed analysts' estimates amid slowing growth in fashion and leather-goods sales.

Revenue advanced to 7.02 billion euros ($9.5 billion), Paris-based LVMH said today in a statement. Analysts predicted 7.24 billion euros, according to the median of 15 estimates compiled by Bloomberg. Sales climbed 8 percent, excluding acquisitions, disposals and currency moves, missing the 10 percent gain predicted by analysts.

LVMH is boosting investment in some of its smaller fashion brands and buying stakes in others to help offset slowing growth at Vuitton, its biggest source of revenue and profit. Still, nine-month revenue at LVMH’s fashion and leather-goods unit rose 4 percent on an organic basis, weakening from the first-half’s 5 percent gain and trailing the 6 percent median estimate.

LVMH said it remains confident for 2013, even in the face of an uncertain economic environment in Europe.

“The group will continue its proactive strategy centered on innovation and targeted geographic expansion in the most promising markets,” LVMH said in the statement.

By Andrew Roberts; Editors: Celeste Perri, Kim McLaughlin, Paul Jarvis