Reuters reports that a strong sales update from LVMH boosted stocks across the luxury goods sector, even though the luxury brand’s revenues were down roughly 25% in the July to September period in Hong Kong. This 25% drop was better than expected as analysts had projected the unrest in Hong Kong might cut sales in half.

LVMH cautioned that fallout from the demonstrations was not over, as store closures in the areas affected were continuing into October. LVMH financial chief Jean-Jacques Guiony said the company will respond by lowering its cost base, particularly with rental costs which Mr Guiony said are among the highest in the world. 

Thanks largely to handbags and accessories, LVMH performed well in the rest of Asia, Europe and the United States, according to Reuters, and third-quarter sales beat forecasts.

Japan performed particularly well and business in France also improved. Mr Guiony said it was unclear whether that was linked to spending shifting away from Hong Kong or to other factors.