News 
In 2020, the group’s consolidated revenue reached €6,389 million, a decrease limited to 6% at constant exchange rates and 7% at current exchange rates.
Recurring operating income amounted to €1,981 million at 31% of sales, and net income group share was €1,385 million, down 9% compared to 2019.
The revenue generated in 2020 in the group’s stores (-2%) reveals good resistance after an excellent 4th quarter (+21%), and a remarkable performance in Asia and in Japan. Despite the sanitary crisis, Hermès continued to develop its distribution network, with both store openings and the renovation and extension of stores. Wholesale activities (-32%) were mainly penalised by sales to travellers.
The network has flexibly adapted to the global context changes by offering omnichannel solutions to its customers. The success of online sales was confirmed in all regions, and the deployment of the new digital platform continued in Asia and in the Middle East.
Asia excluding Japan (+14%) posted strong growth driven by an excellent 4th quarter (+47%), in particular thanks to dynamic activity in Greater
China, Korea and Australia. Despite new store closures in certain countries in the area, sales were particularly strong over the last six months of the year. The stores of Daegu Hyundai in Korea, Harbour City in Hong Kong and Dalian in China successfully reopened after being renovated and extended. Rollout of the new digital platform in Asia was pursued in Hong Kong, Macao and Korea, with very high growth in e-commerce sales.
In Japan (-4%), the recovery since June was particularly dynamic, thanks to the loyalty of local customers. A new store was opened in Osaka in September, and the Sendai Fujisaki store was renovated after expansion. Sales were especially strong on the hermes.jp platform.
America (-21%) gradually recovered in the second half to grow slightly in the 4th quarter. The Wynn Plaza store in Las Vegas was extended and renovated in October, followed by the Short Hills store in New Jersey in November.
Europe excluding France (-20 %) and France (-29%) remained penalised by the closure of part of the stores in November in several countries, and by the introduction of new restrictions as of mid-December. The reduction in tourist flows was partly offset by the loyalty of local customers and by the strong increase in online sales. In October, a new store opened in Madrid in the Galería Canalejas and the store in Stockholm was renovated and extended.
Leather Goods and Saddlery (-5%), for which demand is very strong, resumed growth in the second half, with an acceleration in the 4th quarter (+18%) reflecting steady demand and the gradual resumption of deliveries. The increase in production capacities continues, with the Guyenne (Gironde) and Montereau (Seine-et Marne) workshops which will be inaugurated in 2021 and the Louviers site (Eure) in 2022. In addition, a new site in the Ardennes is scheduled for 2023 and the creation of a second workshop in Auvergne has been announced. Hermès thus reaffirms its strong local integration in France.
The group’s other business lines also benefitted from the favourable momentum of the activity in the different geographical areas. The Ready-to-wear and Accessories division (-9%) continued its growth in the 4th quarter (+12%). The Silk and Textiles business line (-23%) remained penalised by the drop in sales to travellers.
Perfumes and Beauty recorded a decrease of 19% marked by the contraction of tourist flows. Watches (+2%) achieved excellent performance in the 4th quarter (+28%). The other Hermès business lines (+24%) confirmed their strong momentum in the last quarter (+56%) thanks to the Home universe and Jewellery.
The Hermès group continued to recruit and increased its workforce by 1,183 people, of which about half of them coming from the integration of the J3L group, historical supplier of Hermès. At the end of 2020, the group employed 16,600 people, including 10,383 in France.
True to its commitment as a responsible employer, Hermès maintained the jobs and basic salaries of its employees worldwide, without resorting to governmental support. The group will pay in 2021 a €1,250 bonus to all group employees for their commitment and contribution to results.
Despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates.
March 04, 2021