In the bag: Hermes sales surpass €5bn

 
Helen Cahill
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The iconic Birkin bag is still a best-seller for Hermes (Source: Getty)

Luxury brand Hermes lifted its sales above the €5bn (£4.3bn) mark last year boosted by sales of its iconic handbags.

The figures

Hermes' revenues reached €5.2bn last year, a growth of 7.4 per cent on the year before on a constant currency basis. Net profit jumped 13 per cent to €1.1bn.

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The brand is best-known for its Birkin bags, which sell for £8,000 each. The old favourites helped hike Hermes' leather goods sales (which also includes sales of its equestrian gear) by 14 per cent.

Why it's interesting

In the UK, big designer brands have been boosted by the fall in the value of the pound since the EU referendum as foreign buyers flock to the capital to snap-up relatively cheap goods. The slowdown in China has been proving difficult, however, and Hermes saw sales in the region down by one per cent by the end of the year.

What Hermes said

On its outlook for the year, Hermes said: "Thanks to its unique business model Hermes will continue its long-term development strategy based on creativity, maintaining control over know-how and singular communication.

"In the medium term, despite growing economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious target of growth rate for revenue at constant exchange rates."

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