An expensive Birkin bag would likely be even more expensive – if you could get it.
Hermes, the high-end fashion house behind A-list accessories, is planning to raise prices on all US items to combat President Trump’s tariffs, the luxury retailer said Thursday.
Their expensive clutches start at around $20,000 and reach six figures. That is, the current 10% tariff on goods from the European Union can see a spike of around $2,000.
The Paris-based company that manufactures most of its products in France did not specify a quantity to raise prices, but according to Eric du Halgoet, it was enough to offset Trump tax growth.
Hermes did not immediately respond to requests for comment on the post.
Trump initially threatened the 27 blocks with a 20% obligation, but reduced them to 10% for 90 days, giving leaders time to negotiate.
The Hermes price hike comes after reporting slower U.S. sales for the first three months of the year before Trump’s tariffs began on April 3.
“We haven’t seen any impact, but we remain very conservative,” Du Halgouet said in a revenue call.
The company said its first quarter total sales rose 7.2% in line with currency movements, down from 18% seen in the last quarter.
French President Emmanuel Macron last week said the 90-day suspension would “send a signal and leave the door open for consultations,” but warned it was a “fragile” suspension.
Meanwhile, Italian Prime Minister Giorgia Meloni is scheduled to visit Washington on Thursday, Trump’s favorite, and will become the first European leader to meet with the president since announcing EU tariffs.
The EU hopes Meloni could potentially negotiate low rates in the 27-nation trade bloc.
Analysts say Hermes remains priced and consistently outperforms its luxury rivals, making it seem more ready for tariff crunch than many others in the industry.
First quarter revenue was $46.9 billion, up from last year’s $4.33 billion.
However, revenues have fallen below analysts’ forecast of $4.7 billion.
The gorgeous clothing brand has grown in all regions, and even in the Americas, which said it was “supported by the solid US momentum in March.”
Analysts warned that our widespread use is due to shoppers who raced to scooped up items before the tariffs came into effect, and it is unlikely to repeat next month.
“Despite the economic, geopolitical and financial uncertainties around the world, the group is affirming its ambitious targets for revenue growth at certain exchange rates,” Hermes said in a press release.
Earlier this week, Hermes surpassed rival LVMH, which owns Louis Vuitton, Tiffany and Dior, as the most valuable luxury group in the world, after its competitors reported weaker sales than expected.
Owned by the billionaire Arnaud family, LVMH is considered a pioneer in the industry, so disappointing revenue sent investors out.
The Louis Vuitton owner’s shares fell 7% on Tuesday, cutting its market capitalization to about $279 billion, compared to Hermes’ $280 billion.
