Shares in LVMH climbed towards record highs after the world’s biggest luxury goods company reported stronger-than-forecast revenue growth for the third quarter.

The shares were up 1.8% at one stage, near a record high. The stock was also the top performer on France’s benchmark CAC-40, with the CAC slipping, and its gains pushed up shares in other luxury goods companies.

“While this will be read positively across the sector, we think this performance sets LVMH ever more firmly as one of the best performers of the industry,” wrote JP Morgan analysts, keeping an “overweight” rating on LVMH shares.

Deutsche Bank, Citigroup and Goldman Sachs also kept “buy” ratings on the shares. LVMH, home to labels Louis Vuitton, Christian Dior and Moet & Chandon, reported third-quarter like-for-like revenues, which strip out currency swings and acquisitions or disposals, grew 12% from a year earlier to €30.1 billion.

That beat the 9% organic growth forecast in an analyst poll and was in line with the previous quarter, in spite of a weaker showing by LVMH’s spirits unit and a tricky foreign exchange climate.

“Given LVMH’s size and diversity, the continued strong growth in 3Q despite tougher comparisons signals a positive demand environment amongst luxury consumers that is encouraging for the broader luxury sector,” Goldman Sachs analysts wrote. LVMH shares are up around 30% so far in 2017, beating an 11% gain on the Stoxx Europe 600 Personal & Household Goods index.

Reuters


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