Hermès Leather Goods revenue down 6% in first quarter

Worldwide
Published:  27 April, 2020

The luxury Group's consolidated revenue amounted to €1,506 million in the first quarter of 2020, down 6.5% at current exchanges rates and 7.7% at constant exchange rates.

Hermès said all the geographical areas were impacted by the health crisis and stores’ closure in the first quarter of the year, with revenue generated in the group’s stores down 7% at constant exchange rates. Revenues in Asia, excluding Japan, declined 9% as 11 stores in Mainland China were gradually closed as of the end of January, while all stores closed in Macao and opening hours were restricted in Hong Kong. Stores have been progressively re-opened in March in Mainland China, and those in Hong Kong and Macao regained traffic even though reduced due to border control measures.

Japan (+1%) is said to have displayed “remarkable resilience”, particularly thanks to the loyalty of local customers. Most stores have been gradually closed since the end of March, following the Japanese government’s announcement of a state of emergency for an unspecified period. In America (- 6%), all the stores have been closed and all e-commerce has been stopped in the United States since 20 March, while Europe excluding France (-11%) and France (- 9%) are strongly impacted, with the network closed mid-March.

The Leather Goods and Saddlery business line recorded a 6% decline as a result of the closure of our stores in the various geographical areas. As of 17 March, Hermès announced the closure of its production sites in France to protect employees, except for the Hermès Perfumes site in Vaudreuil which began producing hydro-alcoholic hand sanitiser on a voluntary basis. The French luxury Group said investments in production capacity have been maintained, with the continuation of the Guyenne et Montereau workshop projects in France, and the announcements of new sites in Louviers and Les Ardennes region.