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Luxury retailer Hermès announced on Thursday that it’s raising prices in the US to offset the effect of President Donald Trump’s tariffs.
Eric du Halgouët, executive vice president of finance at the company, told analysts on call that Hermès hadn’t yet been impacted by the tariffs, but it was going to raise US prices in May to brace for how the taxes could impact growth.
“The price increase that we’re going to implement will be just for the US. Since it’s aimed at offsetting the increase in tariffs, that only applies to the American market,” du Halgouët said on the call.
du Halgouët said the company has plans to hire an additional 1,000 to 1,500 people, but it will remain cautious about the impact of “geopolitical changes” on financial markets. He also said Hermès raised prices across the US and Europe by 6% at the beginning of 2025.
Hermès caters to the uber-wealthy — even the cheapest versions of its trademark Birkin bags currently cost more than $10,000. It has maintained strong growth amid a challenging environment for the luxury sector, and recently surpassed rival LVMH as the most valuable luxury company.
The French company reported a slow down in first-quarter sales — it grew by 7.2% compared to 18% in the prior quarter. It reported first quarter revenue of €4.1 billion and growth in all geographical areas, according to a press release.
Hermès got caught up in a TikTok fueled controversy earlier this month, when a user posted a now-deleted video claiming that 80% of luxury bags are made in China.
The company doesn’t manufacture bags in China and most of its production takes place in France, according to its website. Since Trump issued a 90-day pause on reciprocal tariffs, France is facing a blanket 10% tax.
Representatives for Hermès did not respond to Business Insider’s request for comment.
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