Louis Vuitton sales hurt by China's stock market slump

louis vuitton china

Luxury brand Louis Vuitton is feeling the pinch after a major stocks slump hit China this summer.

The brand's parent company, LVMH (LVMHF), said it was seeing slower spending growth from Chinese buyers.

"This is obviously connected with what happened in China in July and August in the stock market," CFO Jean-Jacques Guiony told investors. "We know perfectly well that when asset depreciation of such a magnitude takes place, this has an impact on our business, and China was no exception...the drop in the stock market has taken its toll."

The company also reported overall sluggish sales growth in its key fashion division, but fared better in its wine and spirits business.

China's broader economic slowdown and a government anti-corruption campaign has hit luxury spending in recent years. While LVMH held strong for some time, it turns out that even the world's largest luxury company isn't immune to troubles in China.

Related: Swiss watchmakers struggle on terrible Chinese sales

Chinese stocks crashed during the summer months, wiping out trillions of dollars in market value. The turmoil rippled out to other markets, and even spooked U.S. investors.

LVMH, which owns more than 70 luxury brands, including fashion label Christian Dior and jeweler Bulgari, saw its shares fall Tuesday in Paris, ending the day down more than 4%.

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