The prestigious fashion brand Hermes announced on Friday that its fourth-quarter sales surged beyond expectations, highlighting the sustained demand for luxury products amidst a challenging market.

The creator of the iconic Birkin bag reported a remarkable 17.6% increase in revenue at constant exchange rates, reaching 3.96 billion euros ($4.15 billion) for the quarter ending December 31, exceeding LSEG analysts’ projections of 3.69 billion euros.

For the full year, Hermes experienced a 14.7% revenue growth at constant rates, totaling 15.2 billion euros, surpassing the anticipated figure of 14.94 billion euros.

Despite challenges faced by the luxury industry in recent years, Hermes has successfully navigated market fluctuations, continuing to project an air of exclusivity as competitors struggle with rising costs and limited product innovation.

Executive Chairman Axel Dumas credited customer loyalty for the sustained sales performance amid a tumultuous economic backdrop. He stated, “In 2024, within a more uncertain economic and geopolitical landscape, our strong results reflect the resilience of the Hermès model and the adaptability of our teams, whom I sincerely thank.”

Looking forward, the French luxury house expects ongoing revenue growth in 2025, though it did not specify an exact figure. Dumas expressed optimism about the upcoming year, noting, however, that it is “too early to identify a turning point” within the broader luxury market, as reported by Reuters.

Please note, this is a developing news story and will be updated shortly.