(Bloomberg) -- Hermes sales surged at the end of last year as the Birkin bag maker thrived amid the slowdown in demand for luxury goods with its unique model driven by scarcity.

Fourth-quarter revenue climbed 17.5% at constant exchange rates, Hermes International SCA said in a statement Friday. Analysts expected a gain of about 14%. The company also announced plans for an exceptional dividend of €10 a share.

The shares rose as much as 4.9% in early Paris trading, bringing the gain this year to 13%, outpacing rivals LVMH and Kering SA.

Despite a cooling in demand for luxury products following the post-pandemic boom, Hermes’ brand still lures wealthy customers willing to splurge on its hard-to-get handbags and pricey silk scarves. All the main divisions of the Paris-based company grew by at least 10%.

In a call with reporters, Hermes Executive Chairman Axel Dumas said the company plans product price hikes of 8%-9% on average in 2024, showing the label’s pricing power amid a more “polarized” luxury market.

Recurring operating income for the year rose to €5.65 billion ($6.1 billion), topping analysts’ estimates.

Quarterly growth was strongest in Japan and the Americas, while Asia Pacific excluding Japan showed the lowest rate. Dumas said on his last visit to China in the fourth quarter he noticed lower traffic in shopping malls, but said that hadn’t affected the company’s sales performance.

Hermes results follow a mixed picture for the industry. LVMH, whose brands include Louis Vuitton and Christian Dior, and Cartier owner Richemont showed resilience. Companies undergoing turnarounds, such as Burberry Group Plc and Gucci owner Kering, fared less well.

(Updates with Executive Chairman comments from 4th paragraph)

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