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PARIS (Reuters) - French luxury group Hermes said sales grew by 11% in the fourth quarter of 2021, a touch below market expectations as self-imposed production caps meant the group could not keep up with demand for its handbags.
Hermes said overall sales rose to 2.38 billion euros ($2.71 billion) in the three months to December, with U.S. shoppers in particular driving growth. That compared with a consensus forecast for revenues of 2.53 billion euros and 12% growth at constant exchange rates cited by UBS.
Sales at the leather goods and saddlery division, which includes its famed Birkin and Kelly handbags, fell by 5.4% over the period, with Hermes citing capacity constraints.
Hermes traditionally caps volume growth in its leather goods production at 7-8% annually, preferring to have long waiting lists for its prized handbags rather than accelerate production.
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Reporting by Silvia Aloisi and Mimosa Spencer
