LVMH Gains as Bag Maker Shows There’s Still Growth in Luxury
- Shares reach highest since Nov. 13 Paris terrorist attacks
- Results positive for the soft luxury industry, analyst says
LVMH shares soared after its sales of luxury goods beat analyst estimates, proving its resilience to an industry slowdown and giving a boost to struggling competitors.
The stock closed up 4.5 percent to 164. 10 euros Tuesday in Paris, after gaining as much as 5.8 percent, the highest price since the Nov. 13 Paris terrorist attacks that provoked a drop in tourism and demand for luxury goods. Third-quarter sales rose 6 percent on an organic basis, beating the 4 percent expected by analysts. Increased demand for leather goods and fragrances fueled growth, with Asia improving significantly, the company said.