Resilience of sales by Hermès

In the first quarter 2020, all the geographical areas were impacted by the health crisis and stores’ closure. The revenue generated in the group’s stores was down by -7% at constant exchange rates.

In Asia excluding Japan (-9%), Mainland China gradually closed 11 stores as of the end of January, while all stores closed in Macao and opening hours were restricted in Hong Kong. Japan (+1%) has displayed remarkable resilience, particularly thanks to the loyalty of local customers. Most stores have been gradually closed since the end of March, following the Japanese government’s announcement of a state of emergency for an unspecified period. In America (-6%), all the stores have been closed and all e-commerce has been stopped in the United States since 20 March, similar to other countries of the region. Europe excluding France (-11%) and France (-9%) are strongly impacted, with the network closed mid-March.

The Leather Goods and Saddlery business line records a decline (-6%) as a result of the closure of our stores in the various geographical areas. The Group’s other business lines have all been strongly affected by the closures of our stores in all the geographical areas, after benefiting from strong momentum in January thanks to the Chinese New Year. The Ready-to-Wear and Accessories (- 11%) and Silk and Textiles (- 20%) business lines have been more severely penalised by the decline in sales prior to the store closures. Despite the very successful launch of the Beauty line beginning of February, Perfumes are down (- 3%) as are Watches (- 7%). The Other Hermès business lines (+ 4%) have fared particularly well thanks to Jewellery.

In this context, following a proposal from Executive Management, the Supervisory Board has decided to alter the proposed ordinary dividend distribution submitted to the General Meeting of Shareholders on April 24th 2020, reducing it from €5.00 to €4.55 per share, i.e. an amount identical to the sum paid in 2019.

April 30, 2020