(Bloomberg) -- LVMH Moet Hennessy Louis Vuitton SE rose after the world’s biggest luxury-goods maker increased sales more than analysts anticipated, buoyed by demand for wines and spirits, showing how its broad product portfolio can insulate it against the sector’s malaise.
The shares advanced 7.6 percent in early Paris trading, the most in more than a year, giving the company a market value of 77.6 billion euros ($85.3 billion).
Revenue rose 4 percent on an organic basis in the second quarter, while analysts expected 2.9 percent. Sales at its biggest segment, fashion and leather goods, unexpectedly gained even as terrorist attacks have hurt tourism flows to Europe, denting demand across the luxury industry. Revenue at the wines-and-spirits business increased 13 percent in the quarter, beating expectations, boosted by champagne in the U.S. and Europe and rebounding cognac sales in China.
Rogerio Fujimori, an analyst at RBC Capital Markets, called the first-half results resilient, “especially considering market fears of a potential miss given Louis Vuitton’s above-average exposure to France and following several weak second-quarter figures from its peers.” LVMH gets 10 percent of its sales from France.
Swatch Group AG, which makes Omega and Breguet timepieces, last week reported a 54 percent slump in first-half profit to the lowest level in seven years. Burberry’s sales fell 3 percent in its most recent quarter.
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