• World News
  • Politics
  • Stock
  • Investing
  • Editor’s Pick
Time And Sales Reporter
Editor's Pick

Hermès to hike U.S. prices for iconic bags and scarves in response to Trump tariffs

by admin April 19, 2025
April 19, 2025

French luxury group Hermès will raise its U.S. prices from the start of May in order to offset the impact of President Donald Trump’s tariffs, the company’s finance chief said Thursday.

The company — which earlier this week overtook rival LVMH as the world’s biggest luxury firm by market capitalization — is best-known for its Birkin and Kelly handbags, along with colorful scarves retailing for hundreds of dollars. Other products include jewelry, watches, shoes, perfume and make-up.

“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’ executive vice president for finance, said during an analyst call that followed the firm’s first-quarter results release on Thursday.

Hermès said prices will rise from May 1 and aim to “fully offset” the impact of the universal 10% tariff imposed by the White House in early April, rather than the 20% duties the European Union may face unless it can negotiate a new deal during Trump’s 90-day reprieve.

U.S. consumers are expected to contend with higher prices on a host of items, ranging from electronics and clothes to cars and houses, as the impact of tariffs bites.

In its first-quarter results, Hermès reported 11% sales growth in the Americas, which accounted for nearly 17% of its sales revenue in the first three months of the year.

First-quarter revenue growth came in at 7% on a constant currency basis overall, just shy of consensus expectations of an 8% to 9% increase, Deutsche Bank analysts said in a note. It also represented a slowdown from 17.6% growth in the fourth quarter of 2024.

The Deutsche Bank analysts said that the results were nonetheless “robust,” with weakness driven by watches and perfume sales, while Citi described them as “a respectable outcome.”

Hermès shares dipped 1.3% in Thursday morning deals, taking its value to 244.5 billion euros ($278.2 billion) — just shy of LVMH’s 245.7 billion euros — according to a CNBC calculation of LSEG data.

LVMH, controlled by France’s billionaire Arnault family, unsuccesfully tried to acquire Hermès a decade ago. Despite drawing level in market cap, Hermès’ annual revenue is less than a fifth that of sprawling LVMH, which owns luxury brands Louis Vuitton and Dior, alcohol business Moët Hennessy, U.S. jeweler Tiffany and beauty chain Sephora.

LVMH on Tuesday reported an unexpected decline in first quarter sales, flagging a fall in its dominant fashion and leather goods division.

Analysts have predicted the luxury sector will be less impacted by tariffs than other retailers due to their ability to pass on increased import costs to a high-spending clientele. However, they would encounter major headwinds from a broad pullback in consumer spending as a result of weaker global economic growth or recessionary fears.

This post appeared first on NBC NEWS

previous post
U.S. judge finds Google holds illegal online ad tech monopolies
next post
Putin announces temporary Easter ceasefire in Ukraine war

Related Posts

Krispy Kreme stock plunges after doughnut chain pauses...

May 9, 2025

UnitedHealthcare sued by shareholders over reaction to CEO’s...

May 9, 2025

NBA star Russell Westbrook launches AI-enabled funeral planning...

May 8, 2025

AMD CEO calls China a ‘large opportunity’ and...

May 8, 2025

Judge allows lawsuit over Burger King’s Whopper ads...

May 8, 2025

Amazon’s Zoox robotaxi unit issues software recall after...

May 7, 2025







    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.




    Recent Posts

    • The V Reversal is Impressive, but is it Enough?

      May 10, 2025
    • Confused by the Market? Let the Traffic Light Indicator Guide You

      May 10, 2025
    • Which Will Hit First: SPX 6100 or SPX 5100?

      May 10, 2025
    • Investment Portfolio Feeling Stagnant? Transform Your Path Today

      May 10, 2025
    • Trump says 80% tariff on China ‘seems right’ ahead of weekend talks with Beijing

      May 10, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 timeandsalesreporter.com | All Rights Reserved

    Time And Sales Reporter
    • World News
    • Politics
    • Stock
    • Investing
    • Editor’s Pick

    Read alsox

    Don’t Move the Swamp, Cut It!

    January 28, 2025

    Distribution Tables Distort the Tax Policy Debate

    February 28, 2025

    Republicans Should Aim for Canada-Size Cuts

    February 4, 2025