The luxury world often looks to LVMH Moët Hennessy Louis Vuitton for guidance, reading tea leaves in the powerhouse company’s results for a sense of where the market is headed. 

In the stock market on Wednesday, LVMH was moving up — and most of the rest of the industry followed after the firm reported that organic sales returned to growth with a 1 percent bump up in the third quarter. 

Shares of LVMH shot up 12.2 percent to 597.90 euros, leaving it with a market capitalization over 300 billion euros.

Thomas Chauvet, an analyst at Citi, described LVMH’s quarter as, “A ray of hope” after what’s been a tough year.

The quarter “appears as a potential turning point in LVMH’s sales/earnings momentum,” Chauvet said in a research note to clients. “We believe management are addressing structural issues at the key fashion brands and Moet-Hennessy, while investing behind the brands and mitigating some cyclical pressures through cost control.”

There are still challenges ahead — the fourth quarter will bring with it tougher comparisons — but luxury investors breathed in a collective sigh of relief. 

Among the other gainers for the day were Salvatore Ferragamo, up 7.8 percent to 5.95 euros; Moncler, 7.8 percent to 52.42 euros; Prada, 7.7 percent to 45.72 Hong Kong dollars; Hermès International, 7.4 percent to 2,175 euros, Compagnie Financière Richemont, 6.3 percent to 160.55 Swiss francs, and Kering 4.8 percent to 313.15 euros. 

One good day in the stock market will not automatically change the fortunes of an entire sector, but the investor vibe certainly improved and momentum counts for something. 

Luca Solca, an analyst at Bernstein, said: “LVMH delivered beats across all divisions with the fashion and luxury goods division supported by sequential improvements in local spending from the Chinese (growing midsingle digit to high-single digit locally in the third quarter), Americans, Southeast Asian consumers, and Middle Eastern customers. LVMH also sees its turnaround at Tiffany continuing to bear fruit…and traffic and basket improvements at Sephora.”

LVMH — like much of the rest of luxury — is at a turning point with fresh faces everywhere. Within the Paris giant’s portfolio, Jonathan Anderson has stepped in as creative director at Dior, Maria Grazia Chiuri is back on her way to Fendi and Loewe is now in the creative hands of Jack McCollough and Lazaro Hernandez. 

That means the changes will keep coming for LVMH. 

Oliver Chen, an analyst at TD Cowen, said: “We are encouraged for the company as Dior outperformed expectations (management called out makeup and skin care outperforming expectations as an example) with great improvement seen in all key nationalities, increased newness, and experiential luxury (exhibit to celebrate Miss Dior in Shanghai, new Diorigami jewelry collection).”

While Chen has a hold rating on the stock, he pointed to a number of green shoots, including local demand for fashion and luxury goods, “‘self-help’ initiative revolving around creative renewal and retail initiatives” and improvement in the U.S.