French handbag maker Hermes lowers sales outlook on slowing economies

French handbag maker Hermes cut its sales outlook for a second year, predicting growth at less than half the level of the start of this decade, as the luxury-goods sector cools.

Revenue might miss its medium-term goal of 8% growth at constant exchange rates in 2016 due to global economic and political risks, the Paris-based maker of €9,000 briefcases and €6,000 messenger bags said yesterday.

Last year, Hermes lowered the goal from a previous target of 10%. Growth exceeded 18% in 2010 and 2011.