THE WHAT? Hermes has reported its results for the quarter ended March 31, 2020. The luxury brand reported revenues of €1,506 million for the first three-months of the year, down 6.5 percent on last year’s figures.
THE DETAILS Thanks to the ‘very successful’ launch for its beauty line in February, the brand’s Perfumes division saw sales drop a modest 3 percent, a far cry from the losses seen at rival LVMH.
“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,” said Axel Dumas, Executive Chairman of Hermès. “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.”
THE WHY? The Birkin manufacturer attributed the loss to store closures resulting from the COVID-19 pandemic and warned that sales the second quarter would be ‘significantly impacted’ by continuing closures.