Hermès International SA, a French high fashion luxury goods manufacturer, posted 6.5 per cent sales decrease to €1,506 million in first quarter (Q1) FY20 ended in March 2020 compared to sales of €1,610 million in same period prior year. Ready-to-Wear and Accessories sales fell 9.6 per cent to €325.8 million compared to sales of €360.2 million in Q1 FY19.
The Leather Goods and Saddlery business declined 6 per cent to €771.1 million due to closure of stores in the various geographical areas. Silk and Textiles sales dropped 18.1 per cent to €115.0 million (Q1 FY19: €140.1 million).
Sales in France fell 8.6 per cent to €168.9 million (Q1 FY19: €184.8 million). While sales in rest of Europe dropped 10.3 per cent to €234.7 per cent (Q1 FY19: 261.6 million). Sales in Japan grew 4.6 per cent to €213.6 million (Q1 FY19: €204.2 million). Asia-Pacific region (excluding Japan) reported 8.4 per cent decrease in its sales to €600.9 million. Sales in Americas were 4.2 per cent down to €258.5 million (Q1 FY19: €269.7 million).
The company in its outlook reported that the developments in the pandemic and the measures decided by governments do not enable them to anticipate the dates for re-opening stores. And Hermès believes that sales in the second quarter will be significantly impacted by the closures of a significant part of the network.
