French luxury goods group Hermes posted an 20.7 percent rise in first-quarter sales at constant exchange rates, driven by surging demand for its watches and leather goods in Europe and Asia.

Maison Hermes building by Renzo Piano in Ginza, Tokyo

Overall, Hermes sales in the three months to March 31 rose 25.5 percent to 637.1 million euros ($890 million), or 20.7 percent at constant currencies.

Based on forecasts from eight analysts, Hermes was expected to report sales of 583 million euros for the three months to March 31.

(Reporting by Christian Plumb, editing by Matthias Blamont and Erica Billingham)