Hermès’ Strong Sales Gains Fall Shy of Loftier Expectations (1)

Hermès International SCAextended its run as the luxury industry’s strongest performer with another quarterly sales jump, even though the Birkin and Kelly bags maker’s key leather unit fell slightly short of expectations.

Revenue at the unit, Hermès’ main profit engine, rose 13.3%, far ahead of recent results from the likes of LVMH Moët Hennessy Louis Vuitton SE, but still slightly below the 13.8% analysts had expected. Shares fell as much as 5% in early Paris trading.

Expectations for the luxury industry have grown after rival LVMH posted reassuring sales last week, pleasing investors and sending its shares higher. ...