France's LVMH reported a 1% rise in third quarter sales on Tuesday, helped by improved demand in China as the luxury goods industry grapples with a prolonged slump.

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It was the first quarter of slight growth this year for the world's largest luxury goods group, which is seen as a sector bellwether with operations spanning fashion, alcohol and retail.

Sales at the fashion and leather goods division, home to flagship brands Louis Vuitton and Dior and accounting for more than two-thirds of profits, were down 2% versus a year earlier.

The trading update beat a Visible Alpha consensus cited by HSBC that had seen flat overall sales and a 4% decline for the fashion and leather division.

Trends in Asia excluding Japan, a market dominated by China, showed "noticeable" i

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