Luxury bag and designer goods firm Hermes (EPA:RMS) told investors it will hike its prices in the wake of Donald Trump’s tariffs.
Hermes today reported €4.1billion of revenue in its first quarter, representing 7% growth, which undershoots analyst forecasts for 9.8%.
It flagged strong demand in the United States for the month of March, prior to Trump’s ‘liberation day’ tariff announcements on April 2.
Responding the changed environment for international trade the luxury bag maker, owner of the Birkin brand, will “fully offset” the new tariffs, increasing prices for customers in the United States from 1 May.
Hermes chair Axel Dumas commented: “In a complex geopolitical and economic context, the house is strengthening its fundamentals more than ever: uncompromising quality, creativity at the heart of all development, and vertical integration, a guarantee of preserving unique savoir-faire.”
In Paris, Hermes shares were off 1.14% trading at €2,336.