PARIS (Reuters) - French luxury group Hermes' (>> HERMES INTL) sales beat expectations in the third quarter, despite a slowdown in the rate of growth, helped by demand for leather goods and ready-to-wear fashion.

Hermes stuck to its target of increasing annual sales by 8 percent at constant exchange rates on Thursday, after reporting revenue rose 7.9 percent on a like-for-like basis in the third quarter, down from 9.7 percent in the second and 8.0 percent in the first.

Europe delivered 14.8 percent like-for-like growth in the third quarter, outpaced only by Japan with 16.6 percent. Asia-Pacific growth, excluding Japan, dwindled to 1.5 percent amid "a difficult context in Hong Kong, Macao and to a lesser extent in continental China".

LVMH (>> LVMH), the world's biggest luxury group, said a month ago that the stock market collapse in China over the summer had affected sales, particularly at its flagship Louis Vuitton brand.

Cosmetics giant L'Oreal (>> L'OREAL) said last month that demand for its luxury products had suffered a slowdown in Hong Kong and at airports, while Cartier-owner Richemont (>> Compagnie Financiere Richemont SA) warned last week that it expected a challenging second half following weak demand for luxury watches in Hong Kong and Macau in the first six months to September.

But British luxury brand Burberry (>> Burberry Group plc) said on Thursday its comparable store sales since the start of its third quarter had improved relative to the second, when they were dented by a slowdown in China and Hong Kong.

Hermes' leather goods division, its biggest, achieved 8.6 percent quarterly like-for-like growth, compared with 11.9 percent for ready-to-wear fashion and accessories, the company said in a statement. The maker of silk scarves and Birkin bags also stuck to its 2015 target for an operating margin below the 31.5 percent achieved last year.

Analysts had expected 7 percent like-for-like growth.

(Reporting by James Regan; Editing by Michel Rose, Greg Mahlich)