Your favorite Hermès goods are about to get a bit pricier.
The French maison will be raising costs of all its products in the U.S. to offset President Donald Trump's tariffs, the company announced on Thursday. The new prices, which will be on top of regular cost changes between 6 to 7 percent, will go in effect on May 1, Reuters reported.
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This news followed the release of Hermès's Q1 sales report, which sat slightly below market expectations. The luxury house netted $4.66 billion in sales over the year's first three months, a 7 percent rise from the previous year but below analysts' predictions of a 9.8 percent growth the same period in 2024, according to Reuters. Sluggishness in the Chinese market, a continued issue amid the global luxury slowdown last year, was one reason that Hermès fell short of expectations. However, the brand did report a 11 percent sales growth in the Americas in Q1, CNBC reported .
As of now, Trump has placed a universal 10 percent tariff on imports. That figure could change if a potential 20 percent levy is imposed on the European Union, though that has not gone into effect.
"The price increase that we're going to implement will be just for the U.S. since it's aimed at offsetting the tariffs that only apply to the American market, so there won't be price increases in the other regions," Eric du Halgouët, Hermès's executive vice president for finance, said during an analyst call, CNBC reported.
The French brand has had quite the week. It just passed luxury bellwether and rival LMVH to become the most valuable high-end company in the world on Tuesday. Hermès saw its market cap hit a whopping $276.3 billion, edging out its rival, which had a $274.5 billion valuation at the time.
Hermès isn't the only luxury brand that's passing along tariff costs to the consumer. Ferrari is raising the U.S. prices of some of its models (like the new F80, for example) by 10 percent to offset the levies. For the marque's other cars, such as the SF90, 296, or Roma, it will absorb any costs.
Overall, though, analysts have predicted that the luxury sector be able to weather the storm of tariff-related price hikes in 2025, when the industry was expected to rebound from that overall high-end slowdown. That's due to wealthy shoppers' ability to account for any cost increase, CNBC reported. Yet, risks of a global economic downturn still threaten the sector, which could cause all consumers to tighten their purse strings. Stay tuned, shoppers.
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