Asia’s growing love of luxury goods has boosted the sales of French fashion house Hermes.

The company, part-owned by Louis Vuitton through a 22 per cent cornerstone stake, posted a total increase of 18 per cent last year – higher than the targeted sales growth of 15 to 16 per cent.

The 175-year old fashion brand said that its full year sales in Asia increased by 16.8 per cent to €1.3billion (US$1.7 billion).

LVMH had flagged a 12 per cent sales growth during the final quarter. 

“The year was all the more exceptional given that growth was already very strong in 2010. We are entering 2012 with confidence,” finance head Mireille Maury said.

“Hermes will continue to invest in developing its production capacity and its distribution network,” the company said.

This year, Hermes will increased its investments to 250 million euros (US$329.3 million) from 200 million euros (US$263.4 million) last year for opening and renovating stores.

Hermes also reported buoyant demand in America and Europe where its sales grew 16.3 per cent to €1billion in Europe (US$1.3 billion).

GB