LVMH third quarter sales beat estimates

World’s biggest luxury group LVMH reported third-quarter revenue that beat estimates, led by a stronger-than-expected performance in fashion and leather goods.

LVMH reported a sales rise to €9.14 billion ($10.2 billion). Analysts had predicted €8.92 billion, according to the median of 21 estimates in a Bloomberg survey. Revenue climbed 6 percent on an organic basis, compared with the 4 percent median estimate.

LVMH was boosted by its fashion and leather-goods unit, where sales rose 5 percent in the quarter, compared with the 2 percent median estimate. The company last week took over German suitcase maker Rimowa for €640 million — a move that Deutsche Bank analysts have said may either postpone or reduce the size of a potential share buyback.

“Asia, excluding Japan, showed a significant improvement during the quarter,” LVMH said in the statement. “The US remains well positioned, as does Europe, with the exception of France which continues to feel the impact of a decline in the number of tourists.”