Hermes shares plunged even as the luxury handbag maker showed signs of recovery while rival Kering has seen its fortunes rebound. Sales at Hermes rose 6.7 per cent to £3.5billion in the second quarter as consumers continued to splurge on its expensive bags and silk scarves despite uncertainty caused by the war in the Middle East. The group, which also owns Balenciaga and McQueen, returned to growth for the first time in three years as sales rose 2 per cent to £3.13billion in the second quarter. They fell 2 per cent in the second quarter, compared to an 8 per cent decline in the three months to March. Sales in its Middle East region fell 2.4 per cent in the second quarter, showing a recovery on the 5.9 per cent decline in the first quarter.