Hermes still king in luxury market

Paris

THE French luxury group Hermès International on Thursday reported a rise in profit of nearly 7 per cent last year, bolstered by strong sales growth in the United States and China, where many of its larger competitors have struggled to adapt their product lines in response to a government-led clampdown on lavish spending.

Hermès, the maker of Birkin and Kelly handbags that can cost US$50,000, recorded a net profit of 790 million euros (S$1.38 billion) for the year ended Dec 31, up from 740 million euros in 2012. Revenue climbed 7.8 per cent, to just under 3.8 billion euros, tempered by weakness of currencies in its main overseas markets.