1113 GMT - European luxury goods companies' earnings prints suggest the sector is no longer facing a broad-based slowdown, UBS analysts write. "Results confirmed a gradual recovery in luxury demand and a stabilization in earnings after over two years of downgrades." Better-than-expected margin growth was the biggest positive surprise across the sector, they write. However, limited upgrades to companies' earnings-per-share outlooks reflect geopolitical headwinds. U.S. demand was the key driver for the sector, while demand in China was broadly stable. A basket of European luxury stocks is up 3.2% so far this quarter, with the sector up 1.3% Thursday. Hermes leads the sector, rising 4%, while sector bellwether LVMH adds 1.2%.
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