Hermès to raise US prices following Trump’s tariffs

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The burden of Herms Donald Trump’s tariff will change to the buyers in the form of a higher price for luxury products, the French group said on Thursday, as it pressed on its rich customers’ elasticity.

Chief Financial Officer Eric Du Halguet said the results of brutality were reported that Chief Financial Officer Eric Du Halguet Berkin and Kelly Bags “damaged the new 10 percent tariff on European imports”.

He has added Hermes To deal with changes in US trade policy, “Business categories” must continue, though he said that the group is counting the right level that the price still has to rise.

His comments come as a luxurious art Braces This year is about Trump’s trade war in the market for high-end products, including US-driven recovery tariffs.

Hermes is expected to use its position as one of the stable names of the luxury industry to prevent unrest in its position, by betting its ultra-rich client base and providing high demand for its bags that exceed the supply.

“We are looking forward to a very uncertain future such an uncertain future. We hope that this group will benefit from the power of many higher values ​​vs. Jeffers’s analyst James Grazinic,” said Jeffers analyst James Grazinic.

Trump’s so -called mutual Tariff Trading partners in the United States have announced that this month has led a number of analysts to reduce their expectations for the rise of luxury sectors in the second half of the year.

Soft growth in China weighs the overall sale in Hermes in the first quarter, a little lower than expected after a strong 2024, which has surpassed the rest of the industry.

Paris-List party, Which vies with lvmh now To be the largest luxury sector company by market prices, the first quarter has recorded organic revenue annually for a total of $ 4.1 billion, it was expected to grow 8.8 percent growth analysts.

The results were slow on the 5 percent growth report that the group reported in the previous quarter because of China’s downturn sales hit. Herms resisted this recession better last year than rivals.

Sales in Asia outside Japan have increased by 1 percent “despite the high comparison basis” and in the last one year Chinese claims, the agency said. The shares were reduced by 3 percent on Thursday morning trading.

Middle -class customers have been identified as expensive and China’s economy has declined, the reasons that are now becoming more complicated by the aggressive trade war of Trump, the luxury industry has fought after an uprising on the Covid -19 epidemic.

“China’s hard compression weighs heavily – we should be better than the years of progress of them [while] The mixture of the category confirms a slow customer demand environment, “Burnstein’s analyst Luca Salka wrote.

In March, the United States increased by 5 percent, including the “Continued Solid Momentum”. Europe, France and Japan were all in the quarter by double digit.

The main leather product section of the group has increased by 10 percent. The group’s signature silk scarf fashion, jewelry and sales also increased compared to the previous year.

However, the perfume and beauty, a section that has been further published to the ambitious buyers due to its low price, was flat, while the clocks decreased by 10 percent.