Hermès banks on its craftsmanship to help it weather the storm
Leathergoods group Hermès has said sales in the first quarter showed “resilience” despite the coronavirus pandemic, falling 6.5% to €1.5 billion.
Chairman Axel Dumas said: “Since the beginning of the Covid-19 crisis, protecting the health of our employees and partners has been our priority, and has prompted us to close many stores and, temporarily, certain sites.
“I would like to thank all the employees who have engaged in solidarity initiatives, and all those who are enabling operations to gradually resume. The solidity of our craftsmanship model, the appeal of our objects, and the efforts made by all the Hermès teams are key assets that will help us confidently overcome the major uncertainties this first period has brought.”
China gradually closed 11 stores 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.
Several countries have experienced a second wave of store closures, further to governmental measures, notably in Singapore, Australia and Thailand since early April. Hermès is continuing to roll out a new website in Hong Kong and Macao. In Mainland China, all of the stores were able to reopen and activity is increasing again.
Japan has 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 govern-ment’s announcement of a state of emergency for an unspecified period.
All stores in the US and Europe have been closed since mid-March.
The group added: “With pride in its artisanal model, in 2020 Hermès pays tribute to the extraordinary tool that is the human hand, as well as to the ingenuity that drives every one of the house’s craftsmen and women. For it is this combination that characterises the innovative spirit of Hermès, its commitment to Innovation in the making.
“In the medium term, despite growing economic, geopolitical and monetary uncertainties around the world, the Group confirms an ambitious goal for revenue growth at constant exchange rates.”
