A guest wears white shirt, brown pants, brown suede jacket and brown hermes bags with a green and white silk neck scarf outside the Hermes fashion parade duration of women Autumn/Winter 2025/2026 as part of the Paris Fashion Week on March 8, 2025 in Paris.
Raimonda Kulikauskiene | Getty Images Entertainment | Getty images
French luxury group Hermes It will increase its US prices since the beginning of May to compensate for the impact of President Donald Trump’s tariffs, the company’s chief of finance said Thursday.
The company, which earlier this rival week LVMH As the world’s largest luxury firm for market capitalization, it is better known for its Birkin and Kelly bags, along with colorful scarves that are sold for sinks of dollars. Other products include jewelry, watches, shoes, perfume and makeup.
“The increase in the price that we are going to implement will be only for US differentials aimed at compensating tariffs that only apply to the US market, so there will be no incessi for prices in the other regions,” Eric Du Halgouët, said the analyst who followed the launch of results of the firm’s first quarter on Thursday.
Hermès’s sales growth slows down
In its results of the first quarter, Hermès reported a sales growth of 11% in the Americas, which represented almost 17% of their sales income in the first three months of the year.
The growth of the first quarter revenue reached 7% in a constant basic currency in general, only less than the consensus expectations of an increase from 8% to 9%, said Deutsche Bank analysts in a note. It also represented a deceleration of 17.6% growth in the fourth quarter of 2024.
Deutsche Bank analysts said the results were “robust”, with weakness driven by perfume watches and sales, while Citi described them as “a respectable result.”
Hermès’s shares fell 1.3% in Thursday morning offers, their value at 244.5 billion euros ($ 278.2 billion), just less than LVMHS 245.7 billion euros, according to a CNBC calculation of LSE data.
LVMH, controlled by the multimillionaire Arnault family of France, without success tried to acquire Hermès a decade ago. Despite the drawing level in market capitalization, Hermès’s annual income is lower than a fifth than the spray LVMH, which has luxury brands Louis Vuitton and Dior, the Moët Hennessy alcohol business, the American jeweler Tiffany and the Sephora beauty chain.
LVMH on Tuesday reported an unexpected decrease in sales of the first quarter, marking a fall in its dominant division of fashion and leather articles.
Analysts have predicted that the luxury sector will be less affected by tariffs than other retailers due to their ability to transmit greater import costs to a high -expenditure clientele. However, they would meet the main winds against a broad setback in consumer spending such as results or weaker global economic growth or recessional phrases.