Hermes, the makers of the iconic Birkin bag and silk scarves, defied expectations and beat profit forecasts in 2015.
The luxury goods maker said in its 2015 results statement that sales in Europe and Japan were so good that it offset cratering revenue in China, which was hit by the huge anticorruption and anti-extravagance campaign led by President Xi Jinping.

Here are the highlights:

Revenue rose 18% year-on-year to ?4.84 billion.
Operating profit hit ?1.54 billion ? ahead of analyst expectations at ?1.52 billion.
Net income rose to ?973 million, up from ?859 million the previous year.
Japan sales grew by 18% ? this is massive compared to Asia sales growth of just 5%.

It’s an impressive set of results. Especially since luxury goods have become less accessible to the growing Chinese middle class and less acceptable for members of China’s elite after the corruption crackdown. Still, Bain & Company’s 2014 China Luxury Market Study, which was released at the beginning of last year, showed that China’s luxury-goods industry accounted for 29% of the global market. So being able to grow a luxury brand in this environment is a big deal.
It is the latest luxury goods company that has managed to capture wealthy clients’ imagination again with iconic products.
Last month, luxury and sportswear group Kering showed in its 2015 financial results that people are also loving Gucci once more and its sales in Europe and Japan are helping offset ...