Weak sales in China at LVMH, the owner of Dior, Tiffany and more, sent a shudder through the luxury sector. Shares in LVMH dropped on Wednesday after the luxury goods giant warned about an “uncertain economic and geopolitical environment” and its latest earnings disappointed analysts.

LVMH posted a year-over-year sales decline in the third quarter, showing the continuing pressure on the luxury sector from weak Chinese spending.

The French luxury empire said the decline in revenue during the quarter was mainly due to lower growth in Japan.

LVMH shares, listed on the Euronext Paris stock exchange, fell 4% on Wednesday having lost 19% of their value in the year-to-date. The French conglomerate’s warning comes as an

LVMH’s sales of fashion and leather goods fell for the first time since the pandemic as the industry’s biggest player was hammered by a slump in demand from Chinese consumers whose appetite for high-end purchases once seemed insatiable.

Bernard Arnault’s luxury fashion group LVMH on Wednesday led its rivals’ shares downward after it reported disappointing sales on weak China demand. LVMH’s fashion and leather goods unit – including iconic brands like Louis Vuitton and Dior – posted a 5% decline in sales,