French luxury brand Hermes yesterday promised sales of leather goods and watches should improve later this year after growth undershot forecasts in the first quarter, partly depressed by a crackdown on gifts for Chinese officials.

Hermes, known for its €13,000 Birkin leather bags, generated first-quarter revenue of €856.8 million, up 12.8 per cent at constant currencies, ahead of analysts’ expectations of 11 per cent.

Much of the boost came from accessories such as belts and gloves, as well as shoes and ready-to-wear clothing, which together saw an 18 per cent revenue rise in the first quarter.

But Hermes’s overall performance slowed from the same period last year when revenue rose 17.6 per cent as growth in sales of leather bags roughly halved from the fourth quarter to 7 per cent. – ( Reuters )