The luxury sector is facing similar headwinds as the airline industry, as terrorism in Europe has weakened demand by reducing tourism and footfall.
"It has an impact, especially in Europe," explained Gerst. "If the market is down, we expect maybe 1 to 2 percent organic growth hit for the full year. It is an impact, but it is manageable."
Despite these uncertainties, Gerst felt LVMH was a solid investment holding.
"We really like the company, it's very well managed in our view," she said. "It's much more defensive than people think: One third of the EBIT (earnings before interest and tax) is coming from spirits and from cosmetics and also their watch business is outperforming the industry."
Meanwhile in the U.K., the vote for Brexit may affect the luxury sector as consumers are becoming weary of brands which market themselves on heritage and artisanship, according to Peter Maxwell, senior researcher at consultancy The Future Laboratory.
"Native luxury brands that trade specifically on their British heritage will absorb some of the damage done to 'Brand Britain' by the vitriol of the referendum and the global perception that the U.K. is now a less open, tolerant and stable nation," he told CNBC via email.
"Patriotism has never been less in vogue and championing the local now has the potential, rightly or wrongly, to be interpreted as jingoism by certain pro-EU demographics."
According to Maxwell, Europe is traditionally seen as the home of luxury manufacturing and severing ties with the continent may have a negative effect on the image of British brands among tourists.
Disclosure: GAM holds LVMH shares in its portfolio.
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