Hermes third quarter sales rise despite sluggish China demand

French luxury-goods maker Hermes reported that sales grew 10.6%. Despite facing a sluggish demand in China the sales growth is largely due to demand in Japan and the Americas, beating analysts estimates.

The company said in a statement today, that sales had risen 11. 1 percent to 990.6 million Euros ($1.2 billion) in the third quarter compared to sales that was 895.5 million Euros in the same period a year earlier.

The luxury-goods makers have been facing softer demand from Chinese consumers over the past year after the Chinese government’s measures to clampdown on largess. In light of the growth, Analysts are now predicting that Hermes’s revenue will continue rising at least 10 percent.

Hermes is known for having a strong growth in the luxury goods sector. Earlier this year, the company had landed on Forbes most innovative retailer list, with the company reporting strong performance sales in August as well.

LVMH which has a stake in Hermes is expected to distribute the holding to its own investors. Bloomberg.com reports it will take place on Dec. 17 which will bring an end to a feud between the luxury-goods makers. The payment will leave LVMH Chairman Bernard Arnault’s family holding company with an 8.5 percent interest in Hermes.

In other news related to the company, WWD reported today that U.S. authorities had seized an estimated $1.8 million in counterfeit Hermes Birkin handbags at the Port of Savannah, last month.