Hermès reports record profits with 23% jump

Hermès, the Birkin bags and silk scarves group, says profitability hit a record high last year after a 23 per cent sales jump, driven by strong demand in Asia and a rebound in the Americas.

The Paris-based group reported better-than-expected fourth- quarter sales, prompting upgrades to full-year earnings by some analysts. Hermès was relatively tight-lipped on prospects for 2013, saying it would expand distribution and strengthen its production capacity; its Kelly and Birkin bags have a waiting list of a year or more.

Hermès’s buoyant sales figures – total sales for the year were €3.5 billion, up 16 per cent – follow mixed reporting by other luxury goods groups.

LVMH, Hermès’s largest shareholder with a 22 per cent, last month reported sales up 5 per cent in its core fashion and leather goods division. – Copyright The Financial Times 2013