RMS Hermes International

   By Cristina Roca 
 

Hermes International SCA on Thursday reported lower first-quarter revenue as its business was hit by the coronavirus.

Hermes, known for its ultra-exclusive Birkin and Kelly handbags, reported first-quarter sales of 1.51 billion euros ($1.64 billion), down from EUR1.61 billion a year earlier and slightly better than analysts' forecasts of EUR1.45 billion, according to a consensus estimate by FactSet. At constant exchange rates, revenue declined 7.7%.

A decline in revenue is rare for the company, which is considered perhaps the most resilient in the luxury-goods sector. But Hermes' sales held up better compared to rivals LVMH Moet Hennessy Louis Vuitton SE and Kering, whose first-quarter revenue recorded double-digit declines due to the virus.

Commenting on the current situation, the company said all its stores around the world are now closed except those in greater China and South Korea due to the coronavirus.

In Mainland China, Hermes said that it has reopened all its stores following the lifting of lockdowns in the country and that activity there is now increasing.

It has also begun to partially and gradually restart its production and logistics operations since April 14, it said.

The company said it has kept up strategic investments in order to be ready to resume business while keeping costs under control.

Write to Cristina Roca at cristina.roca@dowjones.com; @_cristinaroca

(END) Dow Jones Newswires

April 23, 2020 02:39 ET (06:39 GMT)

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