Hermes International sales jumped as the Birkin bag maker continued to benefit from its established appeal as a premium luxury brand. Sales rose 15.6% in the fourth quarter at constant exchange rates, the Paris-based company said in a statement Friday. Analysts expected an 8.7% gain. The leather goods unit was the main driver behind the performance.
Hermes, also known for its silk scarves, joins LVMH in reporting better-than-expected results as luxury shoppers turn their attention to established premium brands including Louis Vuitton and Dior during the pandemic.
The results contrast with Kering SA’s Gucci, whose sales declined last quarter. As opposed to the Italian fashion brand, Hermes has benefited from a strong customer base in European countries. For most luxury companies, the region has been the worst-performing amid a lack of Chinese tourists, shoppers who have helped drive growth at Gucci in the past decade.
Fourth-quarter revenue at Hermes rose about 39% in Asia, on an adjusted basis, and shrank 9.7% in Europe. Full-year recurring operating income fell 15% to 1.98 billion euros ($2.4 billion), topping estimates.
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