At the end of the first half of the year, the French fashion house Hermes International SCA recorded a drop in net profit and revenue amid the closure of many stores and the suspension of production due to the coronavirus pandemic.

The company’s net profit in January-June fell to 335 million euros from 754 million euros in the same period a year earlier, the company said.

Operating income from continuing operations, which excludes certain one-off items of income, decreased from € 1.144 billion to € 535 million.

Hermes revenue fell 24.2% to 2.488 billion euros. Excluding currency fluctuations, the decline was 24.9%.

Deterioration in performance was recorded in all geographic regions and in all business segments.

Sales of the fashion house in France decreased in January-June by 37.8%, in the rest of Europe – by 35.9%. In the Asian region, the indicator decreased by 11.4%, including in Japan – by 19.6%, in the Americas – by 40.8%.

In the leather goods segment, which accounts for about half of Hermes’ revenues, sales decreased by 22.5%. Sales of ready-to-wear clothes (more than a quarter of revenue) decreased by 28.8%. Sales of silk products and textiles fell 38%, perfumes – 28.8%, watches – 18%.

The company said it is still difficult to assess the impact of the pandemic on its annual results, but it still expects an increase in non-currency revenues over the medium term.

«This unprecedented crisis, which began earlier this year and continues, allows us to experience the strength of our business model» said Axel Dumas, CEO of Hermes.

Hermes manufactures clothing, accessories, watches, perfumes, jewelry, table setting and horse harness. The best known are Birkin and Kelly bags, as well as scarves.