Hermès half year sales down 24%
The first half of 2020 was marked by an unprecedented health and economic crisis in scale, duration and geographic extent. The group’s consolidated revenue in the first half of 2020 amounted to €2,488 million, down -24% at current exchange rates. Sales trends in the second quarter (-41%) reflect the impacts of the health crisis on the network. Attached to its commitment as a responsible employer, Hermès saw its operating profitability impacted by strong vertical integration and the weight of fixed costs, consisting mainly of payroll and amortisation of investments and leases. Recurring operating income reached €535 million compared €1,144 million in the first half of 2019, and the recurring operating margin amounted to 21.5% compared to 34.8%. Net income reached €335 million (13.5% of sales).