Editor’s Note
Hermes will raise U.S. prices next month, citing the need to offset the impact of new tariffs.
French luxury brand Hermes will raise product prices in the United States starting next month.
According to the U.S. economic media CNBC on the 17th (local time), Eric du Halgouet, Executive Vice President of Finance at Hermes, stated during a conference call following the first-quarter earnings announcement, “We are planning price increases to offset the impact of U.S. President Donald Trump’s tariffs on corporate growth,” adding, “This price increase will apply only to the U.S. market.”
Hermes explained that the decision to raise prices was made to recoup losses caused by the 10% universal tariff imposed by the U.S. on April 2. Accordingly, prices for all Hermes products in the U.S. are expected to increase starting from the 1st of next month.
Hermes has traditionally raised prices for key products at the start of each new year. Last January, it increased prices for all product categories, including clothing, bags, and jewelry, by an average of 6-7% worldwide.
Meanwhile, Hermes’ first-quarter performance fell short of market expectations. First-quarter revenue increased by 7% year-on-year to 4.1 billion euros, which was lower than the market expectation of a 9.8% increase. This is analyzed to be due to reduced demand for luxury goods resulting from U.S. tariff policies.