Hermès International reported a 6.5 per cent drop in sales over the first quarter, taking the hardest hit from the coronavirus crisis in Asia and Europe. Sales for the quarter at €1.5 declined 7.7 per cent at constant rates. Of this, sales in Asia were €814.5 million with growth in Japan helping to mitigate the drop during the period, when stores in Mainland China were closed from the end of January. Stores in China have since reopened and activity is again on the upswing.

In Europe, where stores have been closed since mid-March, sales declined to 403.5 million euros. The decline was less stark in the Americas, even if all e-commerce has been halted in the U.S. since March 20, down 6.3 percent at constant currencies, to 258.5 million euros. In terms of activities, silk and textiles declined by 19.2 per cent at constant rates, while leather goods and saddlery products proved more resilient by declining only by 6 percent.

However, the brand’s sales operations are gradually resuming and that it has kept a basic salary for its employees around the world without drawing on state assistance. The company plans to propose a dividend at its shareholder meeting.

The brand has also resumed work at its production and logistics sites since April 14, in compliance with safety rules and applying measures to protect employees. With stores currently open only in greater China and South Korea, the brand expects its second quarter sales to be significantly impacted by the temporary closure of most of its network.