The world’s largest luxury retailer has warned of a continuing slowdown in Asia.

LVMH Moët Hennessy Louis Vuitton says its global sales grew four per cent in the first nine months of 2014 to €21.4 billion.

But it took improved growth in Europe and the US during the last quarter to compensate for the slowdown observed in Asia. All of its business groups grew except Wines & Spirits which continued to be affected by de-stocking of cognac by distributors in China, linked to a nationwide clampdown on corporate gift-giving.

But its Champagne business continued to perform well in the third quarter, driven by strength in Japan and the US.

The Fashion & Leather Goods business group recorded organic revenue growth of three per cent for the first nine months of the year.

LVMH also singled out Sephora’s entry into Indonesia as a highlight of a reporting period where all of its retail brands performed well.

But in an outlook, the company referred to “an uncertain economic and financial environment” ahead, saying it would continue its strategy focused on innovation and targeted geographic expansion in the most promising markets.

“LVMH will rely on the power of its brands and the talent of its teams to further extend its global leadership in the luxury market in 2014.”