Hermes to hike high-end handbag prices for US customers to counter Trump tariffs

Core Viewpoint - Hermes plans to increase prices in the US to mitigate the impact of President Trump's tariffs on the European Union, specifically the current 10% tariff [1][4]. Group 1: Financial Performance - Hermes reported a 7.2% increase in total first-quarter sales, adjusted for currency movements, which is below the 18% growth seen in the previous quarter [5][8]. - The company's revenue for the first quarter was $4.69 billion, up from$4.33 billion the previous year, but slightly below analysts' forecasts of $4.7 billion [8][12]. - Growth was observed across all areas, particularly in the Americas, with strong momentum in the US noted in March [9]. Group 2: Market Context and Strategy - The price hike is a strategic response to the tariffs, which were initially threatened at 20$280 billion compared to LVMH's $279 billion following LVMH's weaker-than-expected sales [12]. - The luxury market is experiencing volatility, with analysts cautioning that the recent surge in US sales may be a temporary phenomenon as consumers rushed to purchase items before tariffs took effect [9].