Business

Hermes sales rise on luxury goods rebound

Hermes handbag and leather wallet
Image caption Hermes is well-known for its very expensive bags

French accessories company Hermes has reported a big rise in sales amid a rebound in the luxury goods market.

Sales for the first three months of the year were up 18.5% on last year, Hermes said, with sales in developing markets in Asia seeing the biggest rise.

Hermes makes luxury products including crocodile skin handbags retailing at a 15,000 euros (£12,733; $19,180).

The sales rise follows similar positive news from rivals LVMH, which makes Louis Vuitton, and Gucci.

They have reported 10% and 6% rises in first-quarter sales respectively.

Although investor confidence in Hermes saw its shares rise by 2% on Thursday morning, the company refused to raise its expectations for the rest of the year.

It added that its strong performance this year compares with poor sales in 2009, due to lower consumer spending during the global recession.

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