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With its luxury Birkin handbag carrying a price-tag of £4,500, Hermès is renowned for its lavish style.
But now the French designer has announced it will be raising prices, partly in response to rising costs in silks and leather.
Victoria Beckham is among the elite few able to afford the handbags
It says the leather supply is dictated by the meat trade, and points out that competitors have also hiked prices.
It came as the company bagged itself a 14pc rise in operating profit to £498m in the first half of this year, following a 16pc surge in sales in the second quarter.
In a statement, Hermès commented that demand for its products ‘remains strong, impelled by great creativity’.
The recurring operating margin of the business could now be close to the record reached in 2012 of 32.1pc.
With 10,604 employees at the end of June 2013, Hermès created 486 jobs in the first half of the year.
Shares are at 256p up from 249p.
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