PARIS, Oct 14 (Reuters) - France's LVMH, the

world's largest luxury goods group, reported a 1% rise in

third-quarter sales on Tuesday, helped by improved demand in

China as the industry grapples with a prolonged slump.

Sales at the fashion and leather goods division, home to

flagship brands Louis Vuitton and Dior and accounting for over

two thirds of profits, were down 2% versus a year earlier.

The quarterly trading update beat a Visible Alpha consensus

cited by HSBC that had seen flat overall sales and a 4% decline

for the fashion and leather division.

Trends in Asia excluding Japan - a market dominated by China

- improved "significantly" nine months into the business year,

LVMH said in a statement.

Total sales at the conglomerate controlled by French

billionaire Bernard Arnault, which also owns brands such as

jeweller Tiffany, Moet & Chandon champagne and beauty retailer

Sephora, rose 1% to 18.28 billion euros ($21.17 billion) in the

July to September period.

($1 = 0.8634 euros)