LVMH shares jump 7% after Q4 sales grow

A shopper looks at the window display of a Louis Vuitton store, operated by LVMH Moet Hennessy Louis Vuitton SA.
Balint Parneczi | Bloomberg | Getty Images
A shopper looks at the window display of a Louis Vuitton store, operated by LVMH Moet Hennessy Louis Vuitton SA.

Shares in LVMH jumped more than 7 percent on Wednesday after the French luxury giant posted stronger-than-expected fourth-quarter sales growth thanks partly to its Louis Vuitton brand's renaissance under star designer Nicolas Ghesquiere.

Louis Vuitton, under the creative stewardship of Ghesquiere since November 2013, enjoyed a strong year-end and is trading well, helped by new products and buoyant trading in the United States, LVMH Chief Executive Bernard Arnault said late on Tuesday.

The group's fashion and leather division, its biggest in terms of sales, and of which Louis Vuitton represents more than three quarters of revenue, saw comparable sales rise 4 percent in the fourth quarter, up from 2 percent growth in the previous three months.

Overall, LVMH group posted comparable fourth-quarter sales growth of 5 percent, beating market expectations of around 2-3 percent.

Shares in LVMH were trading 5.3 percent higher at 152.20 euros by 0803 GMT, giving France's fourth-biggest listed company a market value of around 77 billion euros ($88.27 billion).