(Reuters) -Shares of European luxury players rose on Tuesday, pushing the European luxuries index to its highest level since late May this year, as designing debuts among fashion houses and a push for affordability gave investors hope that the sector was set for a gradual comeback.

The rally was led by the big French names, with Kering, Christian Dior and LVMH rising between 3% and 7% as of 1220 GMT, while most of the remaining index constituents gained 1% to 3%.

Luxury groups in Europe have been seeking to turn around their fortunes that had soured as U.S. tariffs and slower demand in China put a dent in their profits.

New designers at houses of Gucci, Bottega Veneta and Dior presented their collections at last week's Milan Fashion week.

"Investors are very pleased with the new collections that have been presented during the Fashion Weeks because one of the reasons for the sector turmoil since early 2024 has been, amongst other things, creativity crises," Kepler Cheuvreux analyst Charles Louis Scotti told Reuters.

Equity analysts from Morgan Stanley also bet on the "burst of creativity", having upgraded their recommendations for Kering and LVMH in a note to investors.

Some luxury brands are also reworking their pricing structures, with more affordable products to be pushed onto store shelves, Scotti added.

"All those factors point to a gradual organic sales growth recovery, which will confirm the worst is behind us," he said.