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With new tariffs raising the cost of European luxury goods in the U.S., American shoppers may soon be booking flights instead of heading to Fifth Avenue.
Hermès reported $4.37 billion (€4.1 billion) in revenue for the first quarter of 2025, up 9% at current exchange rates and 7% at constant rates. But beyond overall growth, the company’s earnings call shed light on the company’s prizing strategy in the U.S. as a result of rising import tariffs.
On April 9, the U.S. enacted an additional 10% tariff on European luxury imports. A potential 20% tariff is still under consideration. In response, Hermès said it will raise prices in the U.S. across all product categories starting May 1. “The idea is just to fully offset this impact with this increase of price on all the different métiers,” said Carole Dupont-Pietri, director of financial communications and investor relations.
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English (US) ·