Hermès International SCA, the 165-year-old French luxury goods maker, has posted a 6.8% increase in full year profits. For the period ended December 31, 2002, the company reported sales growth of 1.3% to Eur1.2 billion ($1.3 billion) fuelled by a high level of demand for leather goods in Japan and the US.

Sales in the company’s leather goods division increased 16%, while revenues from its clothing, perfume and watch divisions declined by between 3% and 5%.

Sales increased 17% in Japan, generated mainly by the opening of a new store in Tokyo in December, 2002. Meanwhile European, the Americas and Asian revenues went up 1%, 4% and 3% respectively.

During the period, Hermès enlarged its exclusive store network with five new locations, bringing the total store count to 216. Over four hundred new jobs were also created at its production sites, mainly in France.

In 2003, the group will open another 15 stores and enlarge two of its major leather goods production sites in Lyon and the Ardennes.

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