How the Hong Kong Protests Have Affected Hermès

Hermès continues to see strong demand in Asia, despite the sharp drop in tourism to Hong Kong as a consequence of several months of violent protests against a controversial extradition bill.

“I don’t see any reversal in trend in Asia-Pacific, excluding Japan,” Hermès CEO Axel Dumas said on Wednesday after the French luxury firm reported strong first-half earnings growth. Sales in the region were up 18.6% at constant exchange rates in the second quarter.

Tourist arrivals in Hong Kong fell nearly 40% in August versus the same period last year, following a 5% drop in July, Financial Secretary Paul Chan Mo-po said in a blog post on Sunday. That represents the biggest monthly decline since the SARS outbreak in 2003.

Dumas said the protests had forced some of the company’s seven Hong Kong stores to close sporadically, especially in the Central District, where it opened a new three-story flagship last year. Nonetheless, he said the brand was buffered by the desirability of its products and the fact that it has a strong local client base.

This story was reported by WWD and originally appeared on WWD.com. To read the full story, please go to WWD.com.

Want more?

Hermès Net Profit $832 Million in H1

As Protests Continue, Hong Kong Retail Market Looks Gloomy

imbox Sponsored

Customer Experience, Revenue Stream and Sustainability Come Wrapped in an IMBOX

Sustainable, footwear protection technology company, IMBOX Protection, is bringing its in-store service to the U.S. market for increased foot traffic and basket size with a new revenue stream.
Learn More

Access exclusive content