Luxury powerhouse Hermès will soon charge American customers more for its coveted products, responding to new tariffs implemented by the Trump administration.
Following Thursday's announcement of weaker-than-expected Q1 sales, the French fashion house confirmed plans to increase prices across its entire U.S. product range starting May 1. Finance Chief Eric du Halgouet told Business of Fashion the company would "fully offset the impact of these new duties" through the price adjustments.
This follows an earlier 6% price increase already implemented this year—part of Hermès' standard annual strategy to maintain its products' exclusive status.
Despite falling short of analysts' projections, Hermès still posted 7.2% sales growth for the quarter ending March 2025, reaching €4.1 billion ($4.66 billion). Market experts had anticipated a more robust 9.8% increase. This announcement comes just days after Hermès surpassed LVMH to claim the title of most valuable luxury company globally.
Du Halgouet noted that American consumer behavior remained strong in Q1, with Hermès recording double-digit sales growth in the U.S. market. While the company hasn't specified the exact percentage of its upcoming price increases, industry observers expect the brand's loyal customer base to maintain demand regardless.
The price hikes respond directly to Trump's recent implementation of a 10% duty rate on global imports. More severe measures—including potential 20% duties on European fashion and leather goods—were temporarily delayed for 90 days.
This development unfolds against a challenging backdrop for luxury retail. The sector faces headwinds from post-pandemic spending fatigue, persistent inflation, and significant economic troubles in China—including a slowing economy, mounting debt crisis, and real estate market collapse. While Hermès has largely weathered these challenges better than competitors, the company continues to struggle with stimulating demand in the Chinese market.
Further details are available in Hermès' complete Q1 2025 financial report.
Share this article
Kristin Kaye
Insatiably curious about human expression, she immerses herself in literature, theater, art, and dance. Her academic journey led to degrees in Modern Literature, where she delved into The Furioso, and Historical Sciences with a focus on Contemporary History. Her studies took her to the prestigious Erasmus University Rotterdam, broadening her international perspective.
Her passion for culture isn't confined to personal enjoyment—it spills onto the pages of various publications. There, she explores not only artistic endeavors but also civil rights issues and the myriad ways human culture manifests itself. For her, writing about these topics isn't just a profession; it's an irresistible calling that stems from her deep-seated fascination with the human experience.