(Bloomberg) -- LVMH shares rose after the French handbag maker’s sales topped analyst estimates, proving its resilience amid setbacks at its luxury rivals.
The stock gained as much as 5 percent to 164.85 euros, the highest price in almost 11 months, in early Paris trading Tuesday. Third-quarter sales rose 6 percent on an organic basis, beating the 4 percent expected by analysts, fueled by increased demand for leather goods and fragrances.
LVMH’s results may be a balm for the industry, proving that some segments of the market still offer growth. Last month, Richemont, the maker of Vacheron Constantin timepieces, warned that first-half earnings fell about 45 percent amid a slump in demand for Swiss watches, and Hermes International SCA abandoned a long-term sales growth target. Shares of peers including Burberry Group Plc and Hugo Boss AG also gained Tuesday.
“The strong performance of the fashion and leather goods division and commentary about improvement in Asia should be taken positively for the soft luxury industry as a whole,” Zuzanna Pusz, an analyst at Berenberg, wrote in a note.
LVMH said improvement in Asia boosted sales growth at its biggest segment, fashion and leather goods, to 5 percent, the fastest pace in more than a year. Revenue from perfumes and cosmetics also bested estimates as Louis Vuitton introduced seven namesake fragrances.
Kering SA, whose Gucci brand has started to make a comeback, reports third-quarter sales on Oct. 25.
To contact the reporter on this story: Corinne Gretler in Zurich at email@example.com. To contact the editors responsible for this story: Matthew Boyle at firstname.lastname@example.org, Thomas Mulier
©2016 Bloomberg L.P.