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French luxury group Hermès plans to offset the cost of new US tariffs by passing them on to its wealthy customers.
“We are going to fully offset the impact of these new duties by increasing our selling prices in the United States,” Chief Financial Officer Eric du Halgouet said in a conference call with journalists on Thursday.
US tariffs could include a 20 per cent charge on European fashion and leather goods and 31 per cent for Swiss-produced watches if fully applied. Last week, Trump paused his reciprocal tariffs on most countries for 90 days but maintained a general 10 per cent levy.
LVMH – the world’s largest luxury group by sales – earlier told the European Union it needed to ease tensions with the US over the tariffs, adding it would be “Brussels’ fault” if no solution was reached.
Hermès, known for its high-end products such as Birkin and Kelly bags, reported an 8.5 per cent increase in first-quarter sales year-on-year, reaching 4.13 billion euros ($A7.39 billion). Despite the growth, the result fell short of analyst expectations.
Performance was weak in Asia-Pacific – Hermès’ most important market – due to ongoing challenges in China, the company said.
Revenue generated in the Asia region inched up to 2.4 billion euros ($A4.3 billion) from 2.3 billion euros ($A4.1 billion) a year ago, according to Hermès.
Revenue from Europe was 857 million euros ($A1.5 billion), compared with 757 million euros ($A1.4 billion) in the previous year, the company said.
French luxury group Hermès plans to offset the cost of new US tariffs by passing them on to its wealthy customers.
“We are going to fully offset the impact of these new duties by increasing our selling prices in the United States,” Chief Financial Officer Eric du Halgouet said in a conference call with journalists on Thursday.
US tariffs could include a 20 per cent charge on European fashion and leather goods and 31 per cent for Swiss-produced watches if fully applied. Last week, Trump paused his reciprocal tariffs on most countries for 90 days but maintained a general 10 per cent levy.
LVMH – the world’s largest luxury group by sales – earlier told the European Union it needed to ease tensions with the US over the tariffs, adding it would be “Brussels’ fault” if no solution was reached.
Hermès, known for its high-end products such as Birkin and Kelly bags, reported an 8.5 per cent increase in first-quarter sales year-on-year, reaching 4.13 billion euros ($A7.39 billion). Despite the growth, the result fell short of analyst expectations.
Performance was weak in Asia-Pacific – Hermès’ most important market – due to ongoing challenges in China, the company said.
Revenue generated in the Asia region inched up to 2.4 billion euros ($A4.3 billion) from 2.3 billion euros ($A4.1 billion) a year ago, according to Hermès.
Revenue from Europe was 857 million euros ($A1.5 billion), compared with 757 million euros ($A1.4 billion) in the previous year, the company said.
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