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Hermès to Raise U.S. Prices to Offset Tariffs Following Slower Q1 Growth

The luxury brand will implement price increases starting May 1 to fully neutralize new 10% U.S. import duties, leveraging its exclusive market position.

Results from Bernard Arnault’s sprawling LVMH have got markets worried. Even usually steady players like Hermès are having difficulties
Hermès' Expensive Bags Are About to Get Even More Expensive
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Overview

  • Hermès confirmed it will increase U.S. prices across all product lines starting May 1 to fully offset the recently imposed 10% import tariffs.
  • The company reported Q1 2025 sales of €4.1 billion, a 7% year-on-year increase, which fell short of analyst expectations of 9.8% growth.
  • Sales in the Americas grew by 11% during the quarter, with strong performance in leather goods and accessories, though watch sales declined by 10%.
  • Hermès had already implemented regular price adjustments of 6–7% earlier this year, with the upcoming U.S. price hikes being an additional measure.
  • The decision underscores Hermès’ reliance on its affluent customer base and pricing power to navigate geopolitical and economic challenges, including U.S.–China trade tensions.