Shares in LVMH and Kering down as shoppers rein in luxury spending

LVMH shares down 5% and Kering 4% amid tailoff in demand as cost of living squeeze hits middle classes

Disappointing figures from the luxury goods conglomerates LVMH and Kering as shoppers reined in spending on handbags, designer clothing and champagne have hit the value of firms in the sector around the world amid fears of ongoing weak demand.

Shares in LVMH, which owns Louis Vuitton, Dior and Tiffany, slid nearly 5% as it revealed that sales in the key Asian markets, excluding Japan, were down 14% in the three months to June amid weak demand for Cognac in China and slowdowns in demand for fashion, watches, leather goods, perfumes and cosmetics.