The fashion and leather goods business of French luxury goods giant LVMH Moët Hennessy Louis Vuitton performed better than analyst expectations in the first quarter as sales climbed.

In the three month period, revenues were up 11% on a reported basis to EUR2.64bn (US$3.66bn). On an organic basis, sales climbed 9%, above analyst expectations of 6% growth.

Sales were boosted by a strong creative momentum, the company said, with the first show of its new artistic director, Nicolas Ghesquière, having been "enthusiastically received".

"New models in the iconic Monogram line were very successful, while the leather lines continue their development," LVMH said. "Other fashion brands continue to grow. The quarter was marked by the opening of flagship stores in Munich for Fendi and in London for Céline. Loro Piana, whose activity is consolidated for the first time this quarter, delivered a remarkable performance."

Group sales were up 4% to EUR7.2bn. The group continued to grow in the US and Asia, while Europe demonstrated "resilience" in a still challenging economic environment.

Bernstein analyst Mario Ortelli said: "We keep our positive stance on LVMH as we just see a longer than expected timing required for the growth of fashion &leather and watches & jewelry to re-accelerate. In particular, we expect that the focus of Louis Vuitton on exclusivity and the integration of Bulgari and Loro Piana will be successful in the midterm also on the back on an improving market demand."