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 sales unexpectedly jumped by a double-digit percentage during the holiday shopping season as consumers splurged on Cartier jewelry, lifting shares across the luxury-goods sector on hopes of a rebound.

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.

European luxury shares soared on Thursday as Cartier owner Richemont's third-quarter sales beat revived optimism for the battered sector.

Shares of top luxury goods companies soared in European trading today, following a robust end-of-year sales report from Richemont (SIX:CFR), which owns the prestigious Cartier brand. The positive sales data has sparked optimism for a broader recovery in the luxury sector,

Shares in European luxury companies rose after the Swiss luxury group reported sales that surpassed analysts’ projections, providing some relief at a time when the sector contends with sliding demand.

Richemont, the owner of Cartier jewellery, beat market expectations for third-quarter sales on Thursday, fuelling hopes that the luxury sector could be coming out of its recent downturn. The Swiss company's sales jumped 10% year-on-year to 6.