(Reuters) – Luxury group Hermès reported a 22.9% rise in fourth-quarter sales on Friday, thanks to buoyant business in the United States, and said there was no fundamental change in trends in China despite the COVID-19 related disruptions that occurred during the period.

Hermès manager Axel Dumas underlined in a call to analysts the strong desirability observed in China during the fourth quarter, also noting the strong demand from Chinese customers for all products during the Lunar New Year. .Revenue for the three months to the end of December amounted to 2.99 billion euros, exceeding analysts’ expectations, which had forecast growth of 17% at constant rates, according to the consensus of Visible Alpha.

Annual recurring operating profitability reached a record 40.5%, compared to 39.3% in 2021, the company said, adding that it was confident for 2023.

In the United States, where Hermès opened a gigantic store on one of New York’s largest avenues in September, sales jumped 40.8%.

This performance contrasts with that of some rivals, which have seen sales decline in the country due to the shift of activities to Europe, as Americans take advantage of the strong dollar when traveling.

The group announced the proposal of a dividend of 13 euros per share at its next general meeting on April 20, as well as the distribution of a bonus of 4,000 euros to all its employees this year.

The group said it had created 4,300 jobs over the past three years, including 2,900 in France, and plans to hire more people this year.

Hermès cited rising labor costs as the reason for recent price increases of around 7% implemented in January.

The title was down 1% on the Paris Stock Exchange at 09:40 GMT. It is up 20.48% since the start of the year.

“Expectations were high today, but operational outperformance should warrant further gains this morning,” JP Morgan analysts wrote in a note.

(Mimosa Spencer report, Augustin Turpin, edited by Kate Entringer)

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