No gloom for luxury brand Hermes

Luxury brands are continuing the beat financial forecasts and despite an almost global economic

gloom, the luxury houses have baffled the most ardent naysayers, bucking the trend of being able to float above it all.

Noting in particular, French group Hermes raising its full-year sales forecast on Saturday after third-quarter growth beat its initial target, pulled by buoyant demand for the 174-year-old brand in Europe, the Americas and Asia.

The maker of leather bags that can cost up to £8,500 said it expected full-year sales growth at constant exchange rates to reach 15-16 per cent this year, against a previous forecast of 12-14 per cent.