November 12, 2001 Posted: 1036 GMT

LONDON (CNN) -- LVMH issued its third profit warning in two months, citing the September 11 terror attacks as having a serious impact on the global luxury goods market.

France's LVMH Moet Hennessy Louis Vuitton, whose brands range from Givenchy and Kenzo in fashion to Louis Vuitton luggage and Moet & Chandon champagnes, said group sales fell 5 percent to 1.1 billion in October.

The company is reliant on tourism for much of its sales but a slowing global economy is also hurting the Paris-based company. September 11 caused a sharp reduction in travel and a "considerable effect" on sales to tourists in most countries.

"In view of this negative trend, LVMH now considers that it will not maintain levels of operating profit achieved in 2000," the company said on Monday.

LVMH expected the reduction in operating profit to be between 10 percent and 15 percent, but said it "will obviously be determined by how the economic climate evolves in the last two months of the year."

However, there were signs of improvement gradually appearing in some European countries, Asia and Japan.

Last month the group said it would strive to achieve at least flat operating profit for the year after reporting worse-than-expected third quarter profit of 2.975 billion.

The group said it would focus on measures to rein in structural costs and strengthen its prestigious brands. Its 50 brands include Louis Vuitton leather goods, Dior perfumes and the Givenchy couture label.