LVMH posts 3% drop in sales as core business slumps

PARIS (Reuters) -LVMH , the world's largest luxury group, said on Monday sales fell 3% over the first quarter, missing expectations and confirming a sector slowdown as shoppers held back on purchases of designer fashion in a choppy economic environment. The French company behind high-end labels including fashion houses Louis Vuitton and Dior, jewellery brand Bulgari and Hennessy cognac, reported sales for the three months to the end of March of 20.3 billion euros ($23.08 billion). The fashion and leather goods division, home to Louis Vuitton and Dior and accounting for nearly half of group sales and over three quarters of operating profit, posted a 5% fall in sales, well below expectations for a flat performance.