HERMES: Q1 earnings leave a lot to be desired

HERMES: Q1 earnings leave a lot to be desired

Due to the pandemic, and the containment measures, stores all over the world closed. So was the case for the renowned handbag maker, Hermes.

The luxury-goods giant, Hermes, released its first-quarter report, and it wasn't a pretty sight. The sales for the first quarter of 2020 took a hit. Sales were €1.51 billion, down from €1.61 billion last year. The revenue declined by 7.7%.

Regardless, it exceeded the analysts' forecast of €1.45 billion.

The drop is something rarely seen for the company, as it is one of the most solid luxury goods manufacturers in the market.

The drop was a reaction of closed stores, but Hermes declared that it opened all of its stores in China, and an increase in the activity is noticeable. Moreover, since April 14, it partially restarted the production and logistics operations.

Still, the 7.7% fall is better than Hermes’ rival LVMH, whose sales fell 15% in the first quarter.


Sources: marketwatch.com, reuters.com

The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation. Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.

The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.