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

Richemont shares jumped around 16% to an all-time high of CHF161.40, surpassing their May 2023 high of CHF161.10, and were set for their biggest intraday rise since October 2008.

Analysts at JPMorgan saw the 14% growth in Jewellery Maisons as particularly impressive, while strong acceleration in Specialist Watchmakers and in the Other division possibly hinted at stronger-than-expected luxury spending during the Christmas season.

Luxury goods companies have fallen out of favour in recent months, as investors have worried over high-end spending potential in China, the largest market.

“Although still fragile, the market is showing signs of stabilisation, with easier comps in the coming quarters,” Vontobel analyst Jean-Philippe Bertschy wrote in a note to clients.

Investors will likely focus on how much of Richemont’s strength is company- and brand-specific, rather than a reflection of a broader improvement in the sector, JPMorgan analysts said, concluding that “it might be a combination of both.”

At 0858 GMT shares in French luxury companies LVMH and Gucci owner Kering were both up around 7%. Italy’s Moncler and Burberry also both rose some 7%. Birkin bag maker Hermès was up 5%.

A broader index of European luxury stocks soared over 7%, set for its largest one-day rally since its inception in May 2022.