PARIS, France - LVMH said political unrest in Hong Kong had caused a drop in business there in recent weeks and added more generally that Chinese demand for Louis Vuitton and other fashion brands owned by the group had fallen in the second quarter.

LVMH Chief Financial Officer Jean-Jacques Guiony told analysts during a conference call on Thursday that the group's duty free business DFS had been particularly impacted by the drop in business in Hong Kong.

He added that he expected cognac trading to improve China later this year, after a drop in sales in the first half.