One of the oldest French luxury goods-maker Hermes has fallen prey to the throes of the pandemic as it reported a fall in net profit and revenue for the first half of the year with many stores being shut down and production at a standstill for the better part of 6 months.
Hermes international’s sales fell 42 per cent in the 3 months through June and net profits were US $ 395 million or €335 million for the first 6 months of 2020, down from €754 million for the same period last year.
Recurring operating income, which excludes some non-recurring items, slid to €535 million from €1.14 billion last year.
Revenue also suffered a steep fall from €3.28 billion to €2.49 billion. With that, Hermes stated that assessing the impact for the full year would be difficult due to continually evolving circumstances but it hopes to achieve revenue growth in the latter half.
Despite seeing a gradual recovery, Hermes shares have seen a 2.5 per cent decline in Paris trading. The company has hired 300 people in production ever since its facility reopened for business.
Many of the world’s luxury companies have been faced with losses due to coronavirus, but Hermes is one of those few, which is slowly moving ahead with its focus on leather products.