Hermès plans to increase prices in the United States starting in May 2025 to fully compensate for the financial impact of President Trump's tariff policies. This adjustment will be applied to all products sold in the U.S. and will be in addition to the regular price increases of approximately 6-7% implemented earlier this year.
The company's Finance Chief, Eric du Halgouet, confirmed that the exact rates are still being finalized. This decision follows a reported 7% increase in sales for the first quarter, totaling €4.1 billion, which fell short of analyst expectations. Despite this, Hermès reported a 15% revenue increase for 2024, reaching €15.2 billion.
Despite the anticipated price hikes, Hermès has not observed significant changes in consumer behavior in the U.S. and continues to see double-digit growth, albeit limited by low inventory. The U.S. tariffs could include a 20% charge on European fashion and leather goods and 31% for Swiss-produced watches if fully applied.
Regarding China, another key market, du Halgouet noted a lack of major improvement but acknowledged recent government efforts to stimulate spending as a positive indicator. Last week, Trump paused most of his tariffs for 90 days, setting a general 10% duty rate instead.