LVMH handbagged for £4bn

THE world’s biggest luxury goods group, LVMH, yesterday saw about £4billion wiped off its value after a surprise slowdown in handbag sales.

LVMH saw shares tumble six per cent GETTY PIC POSED BY MODEL LVMH saw shares tumble six per cent [GETTY/PIC POSED BY MODEL]

The French firm, which owns the Louis Vuitton brand, saw its Paris-listed shares tumble six per cent.

Sales growth at its fashion and leather division was only three per cent between July and September, against forecasts of eight per cent.

The group, which also owns Moet champagne and Hennessy cognac, saw overall turnover rise by a weaker than expected eight per cent to £5.9billion.

LVMH has been trying to tackle the sales slowdown by introducing new Louis Vuitton bags, such as the Capucines model at nearly £3,000.

Finance chief Jean-Jacques Guiony said the launch of new collections had not come in time to lift summer sales.

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