shares jump as UPDATE 1-LVMH Louis Vuitton calm worries

  Louis Vuitton to keep sharp HT lusivity (Recasts adds details about Louis Vuitton, management analyst comment)

PARIS, 26 July (Reuters) - Shares in LVMH rose on Friday after the luxury goods group reassured investors on the margin and sales growth in the Louis Vuitton brand and star joins rivals Kering pointed to an increase in sales in the second quarter.

The latest figures added to combined evidence of a rebound in the luxury sector, as strong demand in Japan and the United States with the recovery in Europe to compensate for the slowdown in China.

Investors fear that the growth of Louis Vuitton ran out of steam after drinking more than two decades by more than 10 percent per year increases by a rapid expansion worldwide.

The industry leader LVMH shares rose as much as 5.7 percent - its biggest one-day gain in more than three years.

LVMH CEO Bernard Arnault, the richest man in France, said in January that the slowdown was voluntary and brand Louis Vuitton has put the brakes on the opening of new stores to keep its exclusivity.

At that time, Arnault has publicly admitted for the first time, Louis Vuitton, LVMH main cause of profits could be ubiquitous.

To counter this perception, said Arnault is the brand upscale and expand their range of leather bag during the work portfolio of LV bags-relief representing two-thirds of its business and generate gross margin about 90 percent.

LVMH Finance Director Jean-Jacques Guiony said on Friday that the margins of Louis Vuitton rose in the first half, both operationally and gross level, reversing believe a decline, the analysts, there are two or three years began.

"People worry that less fabric and leather Louis Vuitton has more influence margins," said Exane BNP Paribas analyst Luca Solca.

HSBC has calculated that the operating margin by Louis Vuitton fell to 42 percent from 44 percent between 2011 and 2012.

Sales growth at LVMH fashion and leather goods division, Louis Vuitton represents 75 percent of sales in the second quarter by 6 percent from 3 percent in the final three months doubled on a comparable basis of comparable data.

"It's a relief that there is an improvement in the second quarter and the margin (LV) continues to deteriorate," said Zurich, Andrea Gerst, manage the funds Julius Baer Luxury Brands helps with € 417 million ($ 551.92 million) under management.

In relation to the performance of Louis Vuitton Guiony regional business in Asia, said "flattened" in the United States "in the mid-single digits," while in Japan and Europe, he was "a little more or a little less than two digits."

Guiony added that most of the Chinese tourists demand today and the demand from China for global brand estimated "mid single digit" conditions were.

Analysts believe that the growth in the global luxury goods industry will slow to about 6-8 percent in 2012, about twice as high as the global GDP growth over 10 percent of the estimated growth in the last year.

Luxury investors and analysts have said they will continue to improve negotiations expected in the second half of the year, thanks in part to the return of Chinese customers, major global buyers of luxury goods.

"We expect a slow but steady recovery in demand for Chinese luxury because of the underlying appetite for luxury and wealth further," Gerst said.

Last year, the luxury market in China, which had been the main engine of growth in the industry has been hit by a downturn in the economy and the government has to facilitate the action against the tradition of giving to transactions and provides the country.

Kering rival LVMH on Thursday said the ongoing slowdown in China, but earlier this week Swatch Group, the biggest watch manufacturer in the world, said he expects Chinese demand to improve in the second half.

Before the rise Friday, the second worst performer on the Paris CAC fell 6 percent shares of LVMH in January are thus 40 index of blue chips and worst stock from total European luxury.

In comparison, the actions of peers as Kering, previously known as PPR, 28 percent in January while shares of Bruno Cucinelli and Salvatore Ferragamo rose more than 50 percent.

On Friday alone, the Kering shares jumped 4.5 percent.

Since January, UBS had estimated that LVMH has its peers luxury of more than 30 percent weaker and traded at a value of 2,014 companies as earnings before interest, taxes, depreciation and amortization (EBITDA) of 8.1 times lower than the industry average of 9.7 times, without the very popular Hermes.