Luxury demand boosts Hermes - Telegraph Strong demand for the French company's upmarket products saw revenues rise 18.3pc to €2.84bn (£2.36bn) in 2011 and net profit jump 40.9pc to €594.3m. The group, which is well known for its handbags and silk scarves, saw operating profit rise by 32.5pc on the previous year to €885.2m, slightly ahead of analysts' forecasts. Hermes' operating margin climbed to 31.2pc, its highest level since the company floated in 1993. The strong performance built on 2010's results, which were also a record. Patrick Thomas, chief executive, claimed the success was down to making "beautiful objects... it is the only real explanation." America and Asia, excluding Japan, performed strongly, with revenue growing 26pc and 29pc respectively. Sales in Japan slipped 1pc. Hermes' results were boosted by a €29.5m capital gain from the sale of a 45pc stake in Jean Paul Gaultier to Spanish firm Puig.