The Strategic and Financial Analysis of Hermès

Abstract

Since the outbreak of the COVID-19 in 2019, the global economic development, including the luxury industry, has suffered a serious blow. As a leading international luxury brand, Hermès has been running their business successfully for 185 years and has just survived the crisis caused by the epidemic. It is well worth analyzing and discussing Hermès from the perspective of strategy and financial statements to provide reference and inspiration for the luxury industry and other industries that have not recovered from the negative impact of the epidemic. This article analyzes Hermès’ internal environment, external environment and strategies by adopting PESTEL analysis, five forces analysis and SWOT analysis and discusses Hermès’ financial position, results of operations and risk factors by analyzing its universal registration document. According to the strategic and financial analysis, it is apparent that Hermès was affected by the epidemic of short duration, but now it has got through the crisis and returned to strong growth.