By BLOOMBERG

PARIS • LVMH Moët Hennessy Louis Vuitton SE’s move to tap hip new design talents in a bid to reignite interest in its biggest brands looks like it’s paying off.

The shares rose to a record, lifting the company’s market value to US$194 billion (RM797.34 billion).

Sales beat analysts’ estimates in the first quarter (1Q) as fresh propositions like Christian Dior SE monogrammed low-top sneakers and US$1,200 Louis Vuitton utility harnesses hit stores.

The key fashion and leather division — where good news often lifts shares across the fashion industry — posted a 15% gain. The stock rose as much as 4% in Paris trading on Wednesday.

The luxury industry is now in its third year of rapid growth as millennial and Gen Z shoppers warm up to the revamped offer and newfound digital savvy of brands like Kering SA’s Gucci.

The growth has been driven by China, where booming sales of high-end fashion have resisted an economic slowdown that pinched revenues for some car manufacturers and Apple Inc.

LVMH’s reshuffle has focused on menswear, with Virgil Abloh — who rose to prominence as the longtime creative consultant to rapper Kanye West — taking the helm of Louis Vuitton’s menswear division last year.

At Christian Dior, designer Kim Jones released buzzy new sneaker models and adapted the brand’s famous Saddlebag line for men.

The company said fur-and-handbags label Fendi, shoemaker Berluti, which also changed its designer, and Loro Piana also boosted the fashion division’s growth.

The level of growth in fashion and leather “should be enough to sustain the upward momentum of the shares”, Rogerio Fujimori, an analyst at RBC Capital Markets, wrote in a note to clients.

Recent gains in LVMH and Christian Dior shares have helped chairman Bernard Arnault (picture) eclipse Berkshire Hathaway Inc chairman Warren Buffett to become the world’s third-richest person on the Bloomberg Billionaires Index. As of Wednesday, his wealth was an estimated US$88 billion.

Star designer Hedi Slimane, known for his influential skinny silhouette and successful turnaround of Kering’s Saint Laurent, returned to LVMH last year to expand the Celine brand, with plans to add menswear, couture and perfume.

His new store concept and first collections, including a line of unisex suiting, were rolled out during the quarter.

Overall, LVMH’s 1Q sales rose 11% on an organic basis to €12.5 billion (RM58 billion), the Paris-based company said on Wednesday after markets closed, which beat analysts’ estimates.

The group — France’s biggest company by market value — promised to “reinforce” its leadership position in luxury this year.

LVMH’s watch and jewellery division was the slowest growing — a sign that high-end timepieces are still struggling to make a comeback in a smartphone-equipped world where brands also face mounting competition from online resellers. — Bloomberg