European luxury goods maker LVMH, (LVMUY) , the owner of the Louis Vuitton brand, saw its stock rise by nearly 5% on Tuesday morning after reporting better-than-expected sales for the third quarter and the first nine months of the year.

According to Reuters estimates, the consensus was for sales of €8.91 billion ($9.9 billion) in the third quarter, but the company reported actual sales of a little over €9.1 billion.

The stock rose by close to 5% to €163.60 in early European trading. It is up by 12.8%  from €145.70 at the start of the year in what has been a volatile period for fashion houses.

LVMH warned of geopolitical uncertainty and currency headwinds when reporting to investors. But it said: "LVMH will continue its strategy focused on innovation and targeted geographic expansion in the most promising markets."

LVMH's nine-month sales came in at €26.3 billion, representing a year-on-year increase of 4% in reported terms  and organic growth of 5%.  Its strongest growth was in perfumes and cosmetics, which were up by 6%, while wines and spirits came in closely behind, with sales rising by 5% during the period.

The analyst consensus suggests sales of a little over €37 billion for the full year, representing growth of 3.8%, with earnings per share seen at €7.84. But not everybody is optimistic about the longer term outlook for the French company.

"Longer term we maintain our bearish view on the larger luxury houses, preferring smaller single brand operators that can better take advantage of new routes to market without compromising high fixed-cost store bases," said Tom Gadsby, an analyst at Liberum Capital in London.

Liberum currently has a hold rating on LVMH stock and a price target of €150.00, which implies downside of 7.9% from current levels.

Tuesday's results come at a time of divergent fortunes for European fashion houses. Luxury firms Burberry (BURBY) and Hugo Boss (BOSSY) have both seen sales under pressure in recent months.

Hugo Boss is still battling the impact of price cuts within its Chinese division and the cost of store closures across the group after weak trading prompted a change of management and a refreshed strategy earlier in the year. The company forecasts a 3% decline in sales this year and a near-20% fall in operating profit.

For Burberry revenue growth has flattened in recent quarters as falling sales in some parts of Asia and the Americas offset much of the growth in Europe, the Middle East and Africa.  

Hugo Boss' stock is down by more than 30% for the year-to-date. Burberry shares have benefited from the depreciation of the pound following the U.K.'s vote to leave  the EU and so are now up by more than 25%. They had fallen 25% this year just before the referendum.