Key assets make Hermès confident of recovery after Q1 “uncertainties”
Luxury group Hermès has reported sales revenues of €1.5 billion in the first quarter of 2020, a decline of 6.5% compared to the same quarter last year.
Executive chairman, Axel Dumas, said “major uncertainties” in the form of covid-19 crisis had followed a “highly dynamic” first month of the year. But he said “key assets” such as the craftsmanship and hard work of the workforce and the appeal of its products would help it overcome these uncertainties.
Its first-quarter performance in Asia (excluding Japan) led to a 9% reduction in revenues, reaching €600.9 million. Stores began to close there at the end of January, but were able to reopen in March.
In contrast, and in spite of store closures there too, sales in Japan rose by 1% during the quarter to €213.6 million. Hermès said its results in Japan displayed “remarkable resilience” thanks to the loyalty of customers there.
Sales were down by 9% in France, reaching €168.9 million, by 11% in the rest of Europe, falling to €234.7 million, and by 6% in the Americas, reaching €258.5 million. All of these regions were “strongly impacted” by store closures, the company said.
Leathergoods and saddlery accounted for 51.2% of total revenues over the three-month period, bringing in €771.1 million, a decline of 4.6%.
