PARIS (Reuters) -Shares in Gucci owner Kering rose 5% is early Paris stockmarket trade on Thursday after the company reported stronger-than-expected sales in the last quarter and signalled improvement across its brands.

The trading update showing a 5% overall sales decline was the first under the leadership of newly-appointed CEO Luca de Meo. Yet it also came as a reminder of the steep challenges Kering is facing to bring shoppers back to its boutiques.

Citi analysts highlighted a “noticeable lack of earnings downgrades for the first time in over three years” but cautioned: “We would not chase recent FOMO rally” before fully-year results and the company’s new strategic plan due in spring.

(Reporting by Tassilo Hummel; Editing by Benoit Van Overstraeten)

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