PARIS, Jan 28 (Reuters) - Luxury bellwether LVMH

beat expectations on Tuesday with a 1% rise in

fourth-quarter sales as demand for designer fashion and handbags

picked up over the holiday season, adding to hopes the sector

has turned a corner.

The owner of brands including Louis Vuitton handbags and

Bulgari jewellery said sales for the three months to

end-December reached 23.9 billion euros ($24.95 billion), as its

main fashion and leather division almost matched last year's

numbers and sales jumped at its retail unit.

The growth outpaced an expected 1.6% decline, according to a

consensus forecast cited by Morgan Stanley.

($1 = 0.9580 euros)