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UPDATE 2-Hermes leads luxury pack with strong Christmas sales

<p> * Hermes 2009 sales up 4.1 pct at constant currencies </p><p> * Q4 sales up 11 pct, constant currencies; 8.5 pct reported</p><p> * LVMH Q4 sales up 1 pct like-for-like</p><p>  (Adds comments by finance director, analyst; share prices)</p><p> By Astrid Wendlandt     </p><p> PARIS, Feb 5  - Hermes (HRMS.PA) on Friday joinedthe ranks of rival luxury groups including LVMH (LVMH,[http://forum.hbzaojiao.org/showtopic-14935.aspx Brands with stores may fare better- Bain_76].PA) andRichemont (CFR.VX) to report surprisingly strong Christmassales, after suffering the worst industry slump in two decades.</p><p> Hermes,[http://ltoo.net/viewthread.php?tid=771046&extra= LVMH set to dazzle with first-half figures_47], with a product range spanning silk scarfs and20,000-euro crocodile handbags, reported the strongestfourth-quarter sales growth of all, comfortably beatingforecasts, and lifted its own profit expectations for the year.</p><p> "Christmas was better than expected, we had not foreseensuch growth," Finance Director Mireille Maury told . "Weare optimisitc (about 2010)," she added.</p><p> In the fourth quarter Hermes's leather goods sales rose 16.8percent at constant currencies to 278.7 million euros, silk andtextiles were up 17.7 percent and ready-to-wear and fashionaccessories were up 12.2 percent.</p><p> LVMH late on Thursday posted a 1 percent rise in itslike-for-like fourth-quarter sales and a smaller than expecteddrop in 2009 operating profit, citing signs of improvement inwatches, spirits and champagne. [ID:nLDE61112S]</p><p> The firm said it produced record sales in December andseveral divisional heads gave relatively upbeat trading updates,while Chief Executive Bernard Arnault said the crisis meant"bling bling" was out and authentic and genuine luxury was in, atrend which analysts say tends to benefit strong and wellestablished brands.</p><p> Hermes, the world's third biggest luxury goods maker afterLVMH and Richemont in terms of market value, said it nowexpected a slight rise in its current operating profit for lastyear, having previously expected a small drop.</p><p> Net profit should be about the same as it was in 2008, itadded.</p><p> "With that, Hermes is the only one in our luxury goodsuniverse achieving positive organic growth for 2009," analystsat Vontobel said in a note.</p><p> Looking at 2010, Hermes said it expects sales to rise 5percent at constant currencies after climbing 4,[http://www.officialceline.com/celine-doctor-bags/celine-doctor-leather-bag-beige-brown Celine Doctor Leather Bag Beige Brown].1 percent in2009 and aims to maintain its operating margin.</p><p> OUTPERFORMING PEERS</p><p> U.S. consultancy Bain & Co expects global luxury sales torise 1 percent this year after falling 8 percent last year.</p><p> Earlier this month, several luxury groups including Burberry(BRBY.L), Richemont and Swatch (UHR.VX) publishedforecast-beating 2009 sales on the back of a strong Christmasand gave relatively upbeat trading updates.</p><p> The positive news flow had already boosted share pricesafter several analysts upgraded their 2009 and 2010 forecastsfor companies in the sector including Hermes and Gucci Group,owned by PPR (PRTP.PA), whose numbers are due on Feb. 18.</p><p> Shares in Hermes were down 2,[http://www.bxego.com/home/space.php?uid=816&do=blog&id=6188 Interview- China must boost imports to avert trade].4 percent at 94.8 euros by 1130GMT on Friday, while LVMH was down 4 percent at 74.80 euros.</p><p>    </p><p> LVMH IMPROVEMENT</p><p> Echoing Hermes, LVMH said all of its businesses had improvedin the fourth quarter. On a like-for-like basis, LVMH's winesand spirits sales fell 6 percent, perfume and cosmetics rose 2percent and watches and jewellery were up 5 percent.</p><p> Like-for-like turnover from LVMH's fashion and leatherbrands which include Louis Vuitton and Celine, rose 3 percent inthe quarter while selective retailing, which includes the beautyproducts retailer Sephora, was up 4 percent. For related SephoraCEO interview see [ID:nLDE6132KH].</p><p>  Hermes's retail network helped shield the Paris-basedcompany from the crisis, with Hermes shops generating about 80percent of total sales and wholesale 20 percent.</p><p> In the fourth quarter its boutiques enjoyed an 18 percentsurge in sales, a performance Maury described as "exceptional."</p><p> Full-year sales by the boutiques were up 17 percent atcurrent exchange rates and 12 percent at constant currencies,while wholesale turnover was down 17 percent at constantcurrencies.</p><p> In comparison German fashion house Hugo Boss BOSG_p.DE,which depends on wholesale for two thirds of its turnover,reported a 7 percent drop in 2009 sales earlier this week.However, like others it benefited from improved trading in thefourth quarter. [nLDE612225] ($1=.7207 euros) (Editing by Hans Peters, Greg Mahlich)</p>Earnings