After reporting Q1 2025 sales below analysts’ expectations on Thursday, Hermès announced plans to raise the prices on all products sold in the United States to counteract the weight of President Donald Trump’s new tariffs.
“We are going to fully offset the impact of these new duties by increasing our selling prices in the United States from May 1, across all our business lines,” said Finance Chief Eric du Halgouet via BoF. The French brand, which previously warned consumers of such tariff-induced hikes, has already raised its prices roughly 6% this year. The increase was part of the label’s typical annual price hike, maintaining the exclusivity of its leather goods.
In the three months ending in March 2025, Hermès reported a 7.2% increase in sales, which reached €4.1 billion EUR ($4.66 billion USD). Analysts expected the brand, which surpassed LVMH to become the most valuable luxury company earlier this week, to report a 9.8% increase during the period.
In the first quarter, du Halgouet stated that consumer behavior did not change in the United States, where the company reported a double-digit increase in sales. The company did not disclose how much it plans to raise its prices in the region, though it’s safe to assume Birkin-brained shoppers will keep demand for the brand high regardless.
Last week, Trump set a 10% duty rate on imports from around the world, after delaying higher tariffs for 90 days. If fully enforced, US tariffs could include higher duties of 20% on fashion and leather goods from Europe.
The news comes as the luxury sector faces a spending slowdown, which is one part caused by post-pandemic spending fatigue, another the product of high inflation rates, and a third the product of a slowing economy, mounting debt crisis, and real estate crash in China, a target market for high-end labels. Hermès has largely defied the luxury slowdown’s effects to this point, though the brand has struggled to increase demand in China.
See Hermès’ full Q1 2025 financial report here.
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