Paris (AFP) – French luxury group Hermes said Thursday it would hike its prices in the United States to offset the impact of 10-percent import tariffs imposed by President Donald Trump. Famous for its Birkin handbag, silk scarves, and leather goods, the increases would take effect on May 1, said the group’s finance chief, Eric Halgouet. Halgouet did not say by how much prices would be raised, but he said the move would “fully offset” the tariff’s impact.
“It will be a complementary price increase that we are currently finalising, but which will allow us to neutralise this impact,” he told reporters during a quarterly earnings presentation. Hermes, also known for the “H” logo on its belts and other goods, usually raises prices once a year and had already announced a worldwide increase of between six and seven percent earlier in 2025.
Hermes overtook French rival LVMH as the world’s most valuable luxury group this week after the share price of the Louis Vuitton maker sank on disappointing earnings. Hermes posted global sales of 4.1 billion euros ($4.7 billion) in the first quarter of 2025, an 8.5 percent increase from the same period last year. Sales in the Americas region jumped 13.3 percent to 695 million euros, with double-digit growth in the United States, Canada, Mexico, and Brazil, Halgouet said.
US sales were disrupted by wildfires in Los Angeles, which forced the closure of two shops for several days, and snowstorms in other states. Trump imposed a 10 percent tariff on imports from around the world this month, but he delayed higher duties on dozens of other countries, including a 20 percent levy for goods from the European Union.
© 2024 AFP
