Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)

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How Hermes Survived COVID-19 and Recovered So Quickly?

An Analysis of Hermes’s Financial Position and Strategies

Authors
Yitong Wu1, *
1Shanghai University of Finance and Economics, Shanghai, China
*Corresponding author. Email: jacky.wu@yk-industries.com
Corresponding Author
Yitong Wu
Available Online 14 December 2022.
DOI
10.2991/978-94-6463-054-1_77How to use a DOI?
Keywords
Luxury goods; Covid-19; Inflation; Financial statements
Abstract

The COVID-19 outbreak has had a huge impact on the global economy, particularly the retail sector, and Hermes is no exception. However, not only did Hermes manage to avoid heavy losses during the worst of the pandemic, its performance has also exploded in the post-COVID-19 era. This paper attempts to find the reasons for Hermes’ successful response to the epidemic and rapid recovery through horizontal and vertical financial statement analysis, observation of Hermes’ strategic changes and evaluation of external macro factors. The reasons can be summarized as follows: (1) Hermes has high operational efficiency; (2) Low leverage risk; (3) Online channel development; (4) Vigorously layout the Asian market; (5) Value-preserving attribute can cope with inflation. When it comes to the future revenue forecast, it can be predicted that there are several factors supporting Hermes’s revenue growth going forward, but China market is the most uncertain factor for performance growth.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
14 December 2022
ISBN
978-94-6463-054-1
ISSN
2352-5428
DOI
10.2991/978-94-6463-054-1_77How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yitong Wu
PY  - 2022
DA  - 2022/12/14
TI  - How Hermes Survived COVID-19 and Recovered So Quickly?
BT  - Proceedings of the 2022 2nd International Conference on Financial Management and Economic Transition (FMET 2022)
PB  - Atlantis Press
SP  - 705
EP  - 716
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-054-1_77
DO  - 10.2991/978-94-6463-054-1_77
ID  - Wu2022
ER  -