Richemont reported better-than-expected quarterly sales, triggering a rally in luxury stocks, after its core jewelry division bucked a downturn in demand for high-end goods.

For the first time since the Great Recession, the luxury market has been trying to navigate one of its worst slumps. An uncertain global economy and the softening in customer spending have caused many high-end companies to suffer financially due to the continuous slowdown in sales,

Richemont , the owner of Cartier jewellery, on Thursday fuelled hopes of a revival for the beaten down luxury goods industry, with end-of-year sales that exceeded expectations, sending shares higher across the sector.

Cartier owner Richemont on Thursday reported a 10% increase in third quarter sales even as China demand weighed.

The struggling European luxury-goods sector roared to life Thursday after Richemont reported its highest-ever quarterly sales as it blew by analyst estimates.

Richemont , the owner of Cartier jewellery, beat market expectations for third-quarter sales, it said on Thursday, in a positive sign for the high-end of the luxury sector over the all-important holiday season.

Richemont sales unexpectedly jumped by double digits during the holiday shopping season as consumers splurged on Cartier jewelry, a sign of recovering demand for luxury goods.

Richemont reported better-than-expected sales, up 10% compared with the prior-year period, in the midst of a downward trend in demand for luxury goods that is weighing on most high-end brands.

KEY TAKEAWAYS European luxury shares jumped Thursday after Cartier parent Richemont reported record quarterly sales.Richemont's results raised investor hopes that the high-end sector is recovering from the slump induced by weak Chinese demand.