The guest wears a white shirt, brown pants, a brown suede jacket and a brown bag of Hermes with green and white silk scarf around the neck before the Hermes fashion show during women's autumn/winter 2025/2026 as part of Paris Fashion Week on March 08, 2025 in Paris in France.
Raimonda Kulikuusskine Getty Images Entertainment | Getty images
French luxury group Hermes It will raise prices in the US from the beginning of May to balance the impact of President Donald Trump's tariffs, said the company's finance head on Thursday.
The company – which overtook the rival at the beginning of this week LVMH As the world's largest luxury company according to market capitalization-it is best known of its Birkin and Kelly bags, as well as colorful scarves sold by hundreds of dollars. Other products include jewelry, watches, shoes, perfumes and makeup.
“The increase in prices that we intend to implement will be only for the United States, because it aims to compensate for tariffs, which are used only on the American market, so there will be no price increase in other regions,” said Eric Du Halgouët, Hermès Executive Vice President for Finance.
Hermès sales growth slows down
In his The results of the first quarterHermès reported an 11% increase in sales in the Americas, which constituted almost 17% of sales revenues over the first three months of the year.
The increase in revenues in the first quarter amounted to 7% of the permanent currency at all, just a consensus of 8% to 9% expectations, according to Deutsche Bank analysts in the note. Also represented the slowdown 17.6% increase In the fourth quarter of 2024
Deutsche Bank analysts said that the results were “solid”, with weakness driven with watches and the sale of perfumes, while Citi described them as “respect”.
Hermès shares dropped by 1.3% in Thursday morning transactions, raising their value to EUR 244.5 billion (278.2 billion USD) – only low from EUR 245.7 billion LVMH – according to the calculation of LSEG CNBC data.
LVMH, controlled by French billionaire Arnault Family, I tried to get unsuccessfully Hermès ten years ago. Despite the level of drawing in market capitalization, the annual revenues of Hermès are less than the fifth in the vast LVMH, which owns the luxury brands Louis Vuitton and Dior, Business alcohol Moët Hennessy, American Jewel Tiffany and Sephora cosmetics chain.
LVMH on Tuesday reported an unexpected decline On sale in the first quarter, marking the fall of the dominant fashion department and leather products.
Analysts have Provided for the luxury sector There will be less influential tariffs than other retailers due to their ability to transfer increased import costs to high customers. However, they would encounter the main winds from a wide withdrawal of consumer expenditure as a result of weaker global economic growth or recession fears.