The world's top luxury group LVMH said Tuesday that its first quarter revenues slid by two percent, with inflation worries knocking back wine and spirits sales but cosmetics and perfume getting a lift.

The 20.7 billion euros ($22 billion) in sales in the January through March period was slightly under the consensus forecasts of analysts polled by Bloomberg and Factset.

"In an uncertain geopolitical and economic environment, LVMH remains both vigilant and confident at the start of the year," said the company that includes Louis Vuitton, Dior, Celine, and Fendi brands.

When currency effects and changes to the business were eliminated, sales rose by three percent during the period.

"Three percent organic growth following 17 percent last year, that's not bad at all," chief financial officer Jean-Jacques Guiony told journalists.

Luxury firms have seen sales growth slow in recent quarters as China's economic recovery from the Covid pandemic falters.

Nevertheless, Guiony put sales growth to Chinese clients at around 10 percent in the first quarter of 2024, which he called a return to normal.

Sales in the wine and spirits division — which includes Hennessy cognac and several champagne brands — fell by 16 percent on a reported basis.

"The clientele is a clientele touched by inflationary phenomena," said Guiony.

"It isn't easy in China, it isn't easy for champagne in Europe, it's a bit better for cognac in the United States but we've not completely overcome the problems," he added.

Sales of cosmetics and perfume rose by 3 percent, and the selective retailing unit which includes Sephora cosmetics stores and duty-free sales, climbed by 5 percent.