LVMH pops 12% after posting growth for the first time this year

Shares of LVMH popped 12% Wednesday after the French conglomerate posted growth for the first time this year and vowed to solidify its leadership in the global luxury space.

In an update after European trading hours on Tuesday, LVMH — the world’s biggest luxury conglomerate and one of Europe’s most valuable companies — said revenue for the three months to September came in at 18.3 billion euros ($21.3 billion).

It fell below the 19.1 billion euro revenues scooped up in the third quarter of last year, but beat analysts’ expectations.

The Paris-listed firm — whose extensive portfolio of brands includes Louis Vuitton, Tiffany & Co., Christian Dior and Moet & Chandon — is seen as a bellwether for the global luxury goods market.

Currency headwinds, trade tensions and economic disruptions weighed on its performance in the first nine months of the year, the firm said, touting its “resilience and … powerful innovative momentum” in the third quarter. LVMH’s wine and spirits division posted a recovery after growth was dampened by uncertainty around China’s new levies on European Union cognac and new U.S. import tariffs, it said in the late Tuesday release.

Overall, the U.S. and Europe saw “solid local demand” in the three months to September, LVMH said, while Asia — with the exception of Japan — “saw a noticeable improvement in trends.”

Organic growth for the third quarter came in at 1% year-on-year, marking a recovery from two consecutive quarters of declines. Year-to-date, the company’s organic growth remained at 2% lower, however.

This is a breaking news story. Please refresh for updates.