Rock and Republic Blog

High sales for the luxury firm benefit rivals Louis Vuitton and PPR.

LONDON — Investors loved luxury on Tuesday, after an unexpected jump in second-quarter demand for Hermes’ leather handbags–famed for unique designs like the “Birkin” or the “Kelly”–helped sentiment across the sector.

Shares of rival luxury firm Louis Vuitton Moet Hennessy ( LVMHF – news – people )–whose brand portfolio includes Louis Vuitton, Fendi and Christian Dior–rose 1.5%, or 90 euro cents ($1.28), to 59.75 euros ($84.94), during afternoon trading in Paris. Rival retailer PPR ( PPRUF – news – people ), which owns Italian label Gucci, advanced 1.1%, to 62.52 euros ($88.88).