NEW YORK: Hermes Inter-national reported lower revenue from its key leather-goods division, which sells the Birkin bag and couldn’t keep up with demand for its products.Sales of leather goods and saddlery fell 5.4% at constant exchange rates in the fourth quarter. Analysts expected a 2.3% drop.

       Hermes is facing difficulties meeting demand for items such as Kelly bags, which are becoming even harder than normal to find in shops.

       Hermes bag

       The company will boost production capacity with new sites in the French towns of Louviers, Sormonne and Riom through 2024, plus a leatherworking school it opened in September.

       Hermes gets almost half its revenue from leather goods. Total revenue rose 11%, just ahead of estimates.

       Its results come after Gucci owner Kering SA and LVMH SE reported results that beat analysts’ expectations. — Bloomberg