LVMH Moët Hennessy Louis Vuitton, the world's largest maker of luxury goods, reported the slowest quarterly sales growth since the last three months of 2009 as demand for leather goods and watches slowed.

Organic revenue, which excludes currency swings and acquisitions, climbed 6 per cent in the third quarter, Paris-based LVMH said after markets closed yesterday.

"This set of results is not the greatest we have seen at LVMH," Leopold Authie, a Paris-based analyst at Oddo and Cie, said by e-mail.

"Many investors were very worried about a potential faster deceleration given the current context, notably in Asia-Pacific."

Luxury-goods makers have reported divergent sales patterns since the end of August. Burberry said demand is slowing, particularly at lower price points, while Prada and Hermes said they've yet to be affected by the weakening world economy.

Sales of expensive handbags and other items may advance 5 per cent in 2012, excluding currency swings, less than half last year's pace, Bain and Co estimated.

LVMH shares fell 1.5 per cent to €122 at 9.06am in Paris trading, cutting this year's gain to 12 per cent.

A deceleration in revenue growth at the company's fashion and leather goods and watches and jewelry units is "worrying," said Thomas Mesmin, an analyst at CA Cheuvreux in Paris.

Fashion and leather goods sales growth slowed to 4 per cent in the quarter, while watches and jewellery gained 2 per cent, excluding currency swings and acquisitions, Mr Mesmin estimates.

Total revenue in the quarter rose 15 per cent to €6.9 billion, LVMH said.

LVMH said it "remains confident in its outlook for 2012."

Nine-month sales rose 22 per cent on a reported basis and 10 percent excluding currency swings and acquisitions, LVMH said.

Bloomberg