French luxury goods empire LVMH Moet Hennessy Louis Vuitton SA said Monday that third quarter sales dipped 0.6 percent, and said a trend of distributors destocking products appeared to be tapering off.
The maker of Hennessy cognac, Louis Vuitton leather goods and scents such as J'Adore and Miss Dior Cherie reported third quarter sales of euro4.135 billion ($6.17 billion), compared to euro4.160 ($6.21) billion in the year-earlier period.
The company said that, amid the global economic downturn, destocking by distributors remained a problem for brands that do not control their own distribution. But it said the third quarter performance "reflects an improvement from the trends seen earlier in the year, implying that the end of this phenomenon may be approaching."
LVMH shares closed Monday in Paris at euro74.90 Monday, up 3.4 percent.
The company had reported first-half net profit down 23 percent, with watches and jewelry and the wines and spirits divisions dragging down performance. LVMH blamed the bad performances on massive destocking in the first half, linked to the "difficult economic environment."
LVMH shares closed in Paris at euro74.90 Monday, up 3.4 percent.
