European luxury groups defy slowdown fears European luxury goods groups shrugged off fears of a slowdown as top brands Hermès, Salvatore Ferragamo and Brunello Cucinelli reported strong sales - indicating that they could beat expectations for the rest of the year. Hermès, maker of the $10,000 Birkin handbag, said operating profit rose almost 15 per cent in the first half of the year to €584m year-on-year, having accelerated in the latter three months of the period. The French group had earlier reported that sales in Asia, excluding Japan, where Hermès makes a third of its turnover, had risen 17 per cent, with the Chinese market continuing to display "great vitality." It expects full-year sales figures on a constant currency basis to slightly exceed its midterm growth target of 10 per cent. That upbeat view was echoed at Ferragamo. The maker of $500 bow-tied ballerina flats reported revenues up 11 per cent to €625m in the first six months of the year. Operating profit rose 26 per cent while group net profit rose 81 per cent. The buoyant sales support expectations among bankers that Europe's independent luxury brands may become takeover targets for groups such as France's LVMH or Kering - formerly PPR - or private investors such as the Qataris. Brands with strong luxury accessories businesses are particularly sought after. LVMH bought out Loro Piana, an ultra-luxury Italian cashmere and accessories brand, in July. Sales of leather goods and accessories were the drivers of growth at Hermès, which already has LVMH as a shareholder, and Ferragamo, which is seen as a possible takeover target. The strong sales also came despite reports by mass-market and lower-priced consumer groups that slower economic expansion in China and a government crackdown on conspicuous consumption had hit sales in the region which has been a driver for luxury goods sales. Six-month sales at Brunello Cucinelli, where cashmere jumpers sell for $1,500 and which is also considered by bankers to be a potential takeover target, rose 16.5 per cent compared with the year before to €158m, while earnings before interest tax depreciation and amortisation rose 20 per cent. Sales in the US rose by a third and in Europe by 25 per cent. Greater China sales rose 17 per cent. Analyst at Citi said that on the basis of sales so far this year, Mr Cucinelli - who runs his eponymous business out of hilltop hamlet in Umbria in Italy - could already be considered to have 2013 "in the bank."