Hermes International posted record annual profits Tuesday as sales jumped 23 per cent on the back of demand for its luxury goods in Asia and America.

The French maker of the $10,000 Birkin handbag said revenue increased to €3.48bn for 2012, up 22.6% at current exchange rates and by 16.4% at constant exchange rates.

Sales in Asia grew by 24.3% as the company added two new branches in Taiwan and China and expanded or renovated six other stores. Worth pointing out its results seem to be having a postive effect on London listed rival Burberry's share price.

The Americas was also major contributor with sales increasing 20.8% during the year. Europe grew by 11.6%.

"Sales exceeded the target for the year, driven by persistently robust momentum in the fourth quarter," Hermes said in a statement on Tuesday.

Revenue climbed 18.5% in the last three months of the year, compared to a 15.7% growth in the third quarter and 13.4% in the second.

The company's solid performance was in contrast to larger rival and Hermes stakeholder LVMH Moet Hennessy Louis Vuitton SA, which last month reported flat results at its fashion and leather-goods unit.

Hermes shares jumped as high as 1.9% in Paris, but fell 0.20% to €244.50 at 9:30 Tuesday in the French capital.

The fashion giant, known for its Kelly and Birkin handbags and silk scarves, said 2012 sales expanded across all sectors. The group reported a 22% rise in its ready-to-wear and Accessories division, a 16% growth in silk and textiles,a 17% gain in watches, a 14% increase in perfumes and a 12% advance in leather goods and saddlery.

Hermes will pay an interim dividend of €1.50 per share on March 1st.

RD

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