LVMH's commentary on demand in China was a warning for luxury brands, which have relied on Chinese consumers to drive growth in recent years.

The world’s largest luxury group saw its shares tumble as much as 7.5% Wednesday morning to a two-year low before ticking back up by the afternoon.

French luxury giant LVMH reported a 3% fall in third-quarter sales on Tuesday, undershooting estimates in its first decline in quarterly sales since the pandemic as demand in China and Japan weakened,