Hermes Reveals Important Information: Sales In The Second Quarter Mainly Rely On Online

Herm è s, the French luxury goods giant, released key financial data for the first half of fiscal year 2020, with sales of 1.249 billion euros, down 24% year-on-year.

Hermes' key financial data for the first half of fiscal year 2020 as of June 30 are as follows:

Sales were EUR 1249 million, down 24% year-on-year and 25% at constant exchange rate; in the second quarter, sales fell 41% year-on-year and 42% at constant exchange rate.

Operating profit was 535 million euro, down 53.2% year on year

Net profit was 335 million euro, down 55.6% year on year

In the second quarter ending June 30, Hermes' international sales fell 42% year-on-year, more than 40% analysts expected.

According to Axel Dumas, chairman of Hermes group, almost all of its stores have been reopened and 300 new employees have been employed, most of whom are responsible for production related jobs. Dumas also revealed that Hermes "retained jobs, provided basic salaries for employees, and did not use subsidies from various governments during the outbreak."

His unexpected test of the business model was: "this is an unexpected test. Our loyal customers, flexible multi-channel network and the independence of the group are our pillars, which give us confidence in the future recovery. "

Dumas said that for a long time in the second quarter, all of the group's sales came from online channels, with most of the sales coming from consumers who were not regular customers before. Instead, he says, "it's moving from one sales channel to another." Hermes did not disclose the specific number and growth rate of online sales, as well as its proportion in total sales.

The performance of Hermes in each market in the half year was as follows:

Sales in Asia outside Japan were EUR 1.184 billion, down 9% year-on-year (including EUR 583 million in the second quarter, down 9.4% year-on-year).

Stores in mainland China have all reopened since March, and sales growth has been very strong, but sales in Hong Kong and Macao are still unsatisfactory.

Some Asian countries, such as Singapore, Australia and Thailand, have closed stores twice. In June, Hermes launched a new e-commerce platform in South Korea.

Sales in Japan fell 19.6% to 322 million euros, while sales in the second quarter were 108 million euros, down 44.7% year-on-year. Most of the stores were closed for about six weeks in April and may, and the sales performance of this external platform was very strong.

The sales volume of most stores in the United States fell by more than 7840 million euro, which caused a significant decrease of 783 million euro in the sales volume of the United States market, which was more than 783 million euro in the same period of the same period last year, which caused a great decrease of 783 million euro in sales in the United States. Countries outside the United States have begun to recover at the end of June.

France's sales volume was 252 million euro, a year-on-year drop of 37.8%; the second quarter sales of 83.4 million euro, a year-on-year drop of 62.3%.

Sales in Europe outside France were EUR 349 million, down 35.9% year-on-year; in the second quarter, sales were EUR 114 million, down 59.6% year-on-year. Affected by the sharp drop in the number of tourists. On average, stores in Europe were closed for about nine weeks.

In the first half of the fiscal year, Hermes's performance was as follows:

Leather goods and harness: Sales of 1.28 billion euro, a year-on-year decrease of 23%; sales of 509 million euro in the second quarter, a year-on-year decrease of 39.7%

Ready to wear and accessories: Sales of 537 million euro, a year-on-year decrease of 28.8%; sales in the second quarter of 211 million euro, a year-on-year decrease of 46.4%

Silk and textiles: Sales of 165 million euro, a year-on-year decrease of 38%; sales in the second quarter of 50.2 million euro, a year-on-year drop of 60.2%, the worst performance

Perfume: Sales of 113 million euro, a year-on-year decrease of 28.8%; sales in the second quarter of 30.8 million euro, a year-on-year decrease of 58.4%

Watches: Sales of 74.2 million euro, a year-on-year decrease of 18%; sales in the second quarter of 33.2 million euro, a year-on-year decrease of 29.5%, the best performance

Other business units: Sales of 79.3 million euro, a year-on-year decrease of 30.4%; sales in the second quarter of 316 billion euro, a year-on-year decrease of 45.3%