Hermès raises U.S. prices to offset tariffs, maintain margins

PARIS, May 8 (Saudi Arabia Breaking News) – French luxury brand Hermès has increased prices on most of its product categories in the United States by an average of 4 to 5 percent, according to analysts, in a move to offset the impact of tariffs imposed under the Trump administration.

The price adjustments, which apply to handbags, jewelry, ready-to-wear, scarves, and accessories, were confirmed in a recent report by Bernstein analysts. The report indicated that the increases are aimed at covering potential 10 percent tariffs and mitigating the effects of a weaker U.S. dollar against the euro.

The move follows a similar price hike by Louis Vuitton in April, which raised U.S. prices by 3 to 4 percent.

Hermès has maintained strong demand despite consecutive annual price increases. The company reported a 17 percent rise in sales during the fourth quarter of 2024, followed by a 10 percent year-over-year increase in the first quarter of 2025.

The luxury house is currently expanding its production capacity for handbags, with four new factories planned over the next four years. The decision follows supply constraints in the U.S. during the holiday period, despite prior price increases of 6 to 7 percent last year.

While core categories experienced price hikes, home, makeup, and fragrance products saw smaller or no adjustments. Bernstein analysts noted that Hermès likely absorbed tariffs on these more price-sensitive entry-level categories to maintain brand accessibility. Prices for makeup and fragrance products remain between $169 and $186.

Perfume and beauty sales dropped slightly in the first quarter to €129 million, while home and jewelry sales rose 6.1 percent to €256 million. Watches, with an average price of $10,581, recorded a 3.4 percent price increase but faced a 10 percent drop in sales during the same period.

Hermès CEO Axel Dumas highlighted the brand’s long-term resilience during the company’s annual shareholder meeting on April 30, referencing consumer trust during the 2008 financial crisis. “There was a flight to quality,” he said.