LONDON (ShareCast) - (Sharecast News) - Shares in Richemont soared on Thursday, after third-quarter sales at the luxury goods giant smashed expectations.

The Swiss owner of Cartier, Van Cleef & Arpels, Piaget, Chloe and Net-A-Porter, among others, said sales in the three months to December end had come in at €6.2bn, its highest-ever quarterly sales and a 10% hike year-on-year.

Analysts had been expecting a far more modest 1% uptick.

The only region not to show a notable improvement in sales was Asia Pacific, dragged down by challenging conditions in China.

Sales in the region fell 7%. In contrast, they soared 22% in the Americas and by 19% in Europe and in Japan.

Richemont said it had been a "very solid end" to the calendar year, with a marked improvement over the first half across all business areas.

In its core jewellery division - Richemont's biggest unit by some distance - third-quarter sales rose 14% to €4.5bn, boosted in part by a strong festive season.

As at 1000 GMT, the Swiss stock had soared 17%.

The upbeat sentiment spread to rival European luxury brands, with Hermes International trading 5% higher following the update, and LVMH, Kering and Burberry Group all 9% stronger.

Russ Mould, investment director at AJ Bell, said: "Investors [have taken] Richemont's update as a signal that the slump in the luxury goods sector is over.

"Investors were previously caught off guard when they presumed the cost of living crisis would not impact wealthy people, and therefore the luxury goods sector could continue to thrive, but this turned out to be incorrect.

"Richemont's jewellery brands have enjoyed a big comeback, as lucky individuals were treated to something sparkly at Christmas.

"The bullish nature of the trading update has got investors searching for opportunities."

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