The tie proves the limit for Hermes

HERMES, the tie maker of choice for discerning business leaders, raised its annual sales growth target yesterday after posting double-digit revenue and profit increases in the first half, confirming the resilience of the luxury goods industry despite global economic turmoil.

By The Newsroom

Published 1st Sep 2012, 07:00 BST

The French fashion giant is now targeting 12 per cent annual growth at constant exchange rates, up from a previous target of 10 per cent.

Appetite from emerging market shoppers – in particular the Chinese – for designer clothes and leather accessories has shielded luxury goods makers such as Hermes and LVMH from headwinds in Europe.

Hermes sales rose 21.9 per cent to 1.59 billion euros in the first half.

All product lines, from leather goods to jewellery and watches, grew at double-digit rates.

Chief executive Patrick Thomas said that sales trends in July and August were in line with the first half.

Strong brands like Hermes can rely on big spenders who put quality before price.

Europe