LONDON (ShareCast) - (Sharecast News) - Shares in France's LVMH surged on Wednesday, after the luxury powerhouse returned to growth following a difficult first half.
Updating on trading, the owner of Moet Hennessy, Louis Vuitton, Christian Dior and Tiffany & Co, among others, posted a 1% uptick in organic growth during the third quarter, to €18.3bn.

While sales in its biggest division, fashion and leather goods, fell 2%, all other units saw improvements, including a 7% spike in retailing, which includes the hugely popular Sephora beauty brand.

Most regions also saw improved sales. The exception was Europe, where tourist spending declined on the back of currency fluctuations.

In a call with analysts, chief financial officer Cecile Cabanis said LVMH was "encouraged by the pockets of improvement we see in all businesses". She also noted that mainland China, a key market, had "turned positive" in the third quarter.

The better-than-expected update from the world's largest luxury goods company boosted shares across the sector as well as LVMH's.

As at 0945 BST, LVMH had surged 13% in Paris, and in London Burberry was trading 7% higher at 1,243p.

Hermes International was 8% stronger, while Gucci-owner Kering and Cartier-owner Richemont were both trading up 6%.

The luxury goods sector has endured a rocky few years, on the back of widespread macroeconomic and geopolitical uncertainty, weak consumer confidence in China and Donald Trump's global trade war.

LVMH saw revenues fall 3% in the first half, following a 4% decline in the second quarter and 3% slide in the first.

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