Declining demand from China hurts Louis Vuitton in Q2

Louis Vuitton Moet Hennessy has seen a drop in demand from Chinese buyers in its home market and overseas, the French fashion, spirits and cosmetics group said on Thursday after posting below-forecast second-quarter sales and profits.

The world's No 1 luxury group said growth in sales from Louis Vuitton, its main cash cow, had dropped in China in the second quarter from the first, while revenues from Chinese tourists declined in major European markets such as France.

It also said fewer tourists, particularly from the Chinese mainland, were shopping in Hong Kong. Hong Kong is where many leading luxury brands generate more than 10 percent of their global revenue.