UPDATE 2-Hermes outshines rivals, optimistic about Christmas

* Hermes says to exceed target of flat sales at constant fx

* Sees current operating profit falling 5 pct vs 2008

* Q3 sales up 10.2 pct, 4.8 pct at constant currencies

(Rewrites throughout, adds details, FD, analyst comments)

By Astrid Wendlandt, European Luxury Goods Correspondent

PARIS, Nov 6 (Reuters) - Hermes (HRMS.PA) is optimistic about Christmas after sales of its luxury goods continued to improve in October, the French company said on Friday.

The maker of silk scarves and crocodile handbags published sales figures that showed yet again that it is one of only a few luxury good companies to see any growth during the crisis.

"We are optimistic about the end of the year and about Christmas," Hermes Finance Director Mireille Maury told Reuters in an interview.

Hermes, known for its audacious designers, has enjoyed resilient demand during the crisis partly because shoppers consider its timeless style to be good value for money.

"The more the object looks legitimate, the less it will be affected by the crisis," Hermes Chief Executive Patrick Thomas told BFM radio on Friday.

Maury said wholesale trading, the worst hit by the spending downturn, climbed back, particularly in perfumes and watches.

However, revenue from the group's own stores, which represent 80 percent of turnover, rose strongly in Asia, Europe and the United States and overall were up 12 percent at constant exchange rates during the third quarter.

Hermes said that if this trend continued, the group could exceed its target of flat revenue at constant exchange rates, but did not give a detailed forecast.

With a market capitalisation of $15.3 billion, Hermes is the world's second largest luxury group in terms of market value measured in dollars behind LVMH LVMH, but it stands just marginally ahead of Switzerland's Richemont (CFR.VX), worth $15.080 billion.

Hermes shares, which have fallen about 3 percent since the beginning of the year, were up 2.4 percent at 99.11 euros by 1120 GMT.

Buoyed by its resilience and recurring takeover speculation, the stock trades on more than two times the European luxury goods' sector average for expected earnings this year.