Core Viewpoint - LVMH's unexpected return to sales growth indicates a potential easing of the slump in luxury demand, leading to a significant rise in its stock price and boosting luxury stocks across Europe [1][2]. Group 1: Sales Performance - LVMH's third-quarter revenue increased by 1% on an organic basis, ending two consecutive quarters of decline, which raises optimism about a recovery in demand, particularly from China [2][3]. - Sales in the region that includes China rose by 2% last quarter, a recovery from a 9% drop in the first half of the year, marking the first contribution to growth from this region in 2023 [4][5]. - In the US, LVMH's sales grew by 3% during the quarter, while European revenue decreased by 2% due to reduced spending by American tourists [6]. Group 2: Market Reactions - LVMH's stock surged by as much as 14% in Paris, marking the largest intraday gain since September 2001, which positively impacted other luxury brands like Kering and Hermes [1][4]. - Analysts express optimism about the recovery, with JPMorgan's Chiara Battistini noting that the pace of recovery across all regions is encouraging for future growth [3]. Group 3: Sector Insights - The wines and spirits division of LVMH, which had been struggling, showed growth due to restocking of Champagne in the US and increased sales of rosé wine [7]. - Morningstar analyst Jelena Sokolova highlighted the potential for further recovery in China, where consumers have significant savings post-Covid [6].