Hermes is back in the news, this time the French luxury house increased its growth forecast,expecting its operating profit to be 3% higher than expected.
Sales for the three months ended Dec. 31 climbed 25 percent to 736 million euros ($1.02 billion), from 587.3 million euros, Hermes said. The average estimate of eight analysts compiled by Bloomberg was 709.4 million euros. Excluding currency moves, full-year revenue advanced 19 percent to 2.4 billion euros, beating a November forecast of about 15 percent growth.
Hermes follows Bulgari SpA, Burberry Group Plc, Cie. Financiere Richemont SA and Tod’s SpA in reporting a double- digit sales increase in the last three months of 2010, suggesting wealthy consumers are regaining confidence. Luxury demand may rise by 11 percent in 2011, according to HSBC.
“Hermes has been one of the best top-line performers in the luxury industry and we expect this to continue in 2011 and 2012,” Antoine Belge, an analyst at HSBC, wrote in a report last month.