Shares of Kering, owner of luxury brands like Gucci, jumped over 9% after reporting a 5% sales decline in the third quarter, a significant improvement from the previous quarter. Gucci sales fell 14% year-on-year, but the company remains committed to turning around its performance despite currency fluctuations.

Kering recently agreed to sell its beauty unit to L’Oreal for $4.7 billion to focus on its core fashion businesses. Deutsche Bank upgraded Kering’s price target, citing better sales performance across major brands. Analysts at UBS noted positive improvements in Kering’s report, leading to a surge of 33% in shares this year.

Despite challenges like stagnating sales and trade tensions, luxury stocks, including Kering, rallied following LVMH’s surprise return to growth. Kering has faced its own unique struggles, including weakening demand for key brands and leadership changes. The company aims to continue its turnaround efforts to restore its prominence in the luxury market.

Read more at CNBC: Kering shares pop as Gucci sees sharp sequential improvement