Hermes sales rise with luxury goods rebound

LUXURY goods company Hermes said yesterday its fourth-quarter sales rose 25 per cent in 2010 and raised its profit guidance.

The Paris-based company said pre-tax profit will rise by around 40 per cent for the full-year.

Sales for the famous silk scarf and leather goods fashion house hit €736m (£621m) in the three months to 31 December.

Hermes said it will pay its first interim dividend ever next week, after building up a record cash pile. Hermes shares have risen around ten per cent over the past six months.

Sales of leather goods surged by 30 per cent in the quarter.

Meanwhile, the company said revenue from silk ties and scarves climbed 25 per cent. Sales from watches rose 13 per cent, while tableware sales added 23 per cent. However, perfume sales fell three per cent. The company said the Americas had been the best performing market over the quarter.