Shares in LVMH were on track for their largest drop in 14 months on Wednesday after the luxury goods group's latest sales figures disappointed investors hoping for stronger signs of a rebound at the sector bellwether.

LVMH’s sales of fashion and leather goods declined in the fourth quarter, casting doubt on the prospects for a quick recovery in luxury demand.

While LVMH's results "challenge the sector narrative that all luxury companies have seen the acceleration" seen at Richemont and Burberry, it reinforces the idea of a quicker recovery this year than expected in October, analysts at Deutsche Bank said in a note to clients.