LVMH’s sales growth softened in the third quarter as shoppers reined in spending on high-end Cognac and costly handbags, more evidence the post-pandemic luxury boom is waning.

Organic revenue at the French group’s crucial fashion and leather goods unit — which includes the Louis Vuitton and Christian Dior labels — rose 9%, the company said Tuesday. Analysts expected an 11.2% increase. Sales at the wines and spirits unit tumbled 14%, much worse than expected.

LVMH Moet Hennessy Louis Vuitton SE, a favorite of investors in recent years, has lost some luster as China’s recovery underwhelms and demand from US consumers cools. The luxury group passed the crown of Europe’s most valuable company last month to drugmaker Novo Nordisk A/S.

Shares of the Tiffany & Co. owner dropped by almost a fifth from a record in April, though are still up 7.9% this year.

Overall, the group posted 9% organic revenue growth, also below estimates. LVMH is considered a bellwether for the luxury sector, and rivals Hermes International and Gucci owner Kering SA report later this month.