Hermès US Growth Holds

Hermès has begun passing the cost of newly imposed US tariffs directly to American shoppers. On May 5, 2025, price adjustments started appearing online, with handbags — the few available for immediate purchase — and fine jewelry among the first categories affected. Early indications suggest increases in the range of roughly 4.4% to 5.9%, though the figures may shift as more products are repriced.

Hermès handbags and price increase news graphic

Q1 2025 Results: Solid Growth Amid Uncertainty

The increase follows Hermès' first-quarter results, which showed revenue of €4.1 billion, up 7% at constant exchange rates and 9% at current rates. That performance stands out against a cooling luxury market and a demanding comparison base from the prior year, and contrasts with softer sales reported by some rivals, including LVMH, whose leather goods and fashion divisions took a hit.

Executive Chairman Axel Dumas framed the quarter as a reinforcement of the house's core strengths: uncompromising quality, creativity, and vertical integration that protects its unique savoir-faire. He credited customer trust and team commitment for the group's solid growth despite a complex geopolitical and economic backdrop.

Hermès boutique display and handbag selection

Regional Performance: Europe and the Americas Lead

Every geographic region posted growth. Europe rose 13.3% overall, with France up 14.2% and the rest of Europe up 12.7%. The Americas grew 11%, following an exceptional fourth quarter in 2024, though the year began slowly due to weather disruptions: wildfires in Los Angeles forced temporary closures in Beverly Hills and Topanga, and low US stock levels weighed on early months. March brought a strong rebound as inventory was replenished.

Japan surged 17%, while Asia-Pacific excluding Japan rose just 1%, held back by a high comparison base and softer traffic in Greater China. Local client loyalty supported sales, aided by store reopenings in Taiwan in March and at Bangkok's Central Embassy mall in January. Hermès plans two new US stores in Phoenix and Nashville in the second half of 2025.

Hermès leather goods and accessories detail

Category Breakdown: Leather Goods Remain the Engine

Leather Goods and Saddlery, the largest revenue driver, climbed 10% at constant rates on strong demand and new models including the Médor and Mousqueton. Hermès continues to invest in capacity, with its 24th leather workshop opening in L'Isle-d'Espagnac this year and two more sites planned for 2026 and 2027.

Ready-to-Wear and Accessories: +7%, supported by well-received Autumn-Winter 2025 shows in Paris.
Silk and Textiles: +5%, driven by creative innovation across formats and materials.
Other Hermès Sectors: +6%, led by jewelry and the new Hermès en contrepoint porcelain collection.
Watches: -10%, despite new H08 and Arceau Le temps voyageur releases in Geneva.
Perfume and Beauty: -0.5%, reflecting a more competitive landscape.

Tariffs and the US Price Increase

Since April 9, the United States has applied an additional 10% tariff on EU imports, covering Hermès products sold stateside. To offset the impact, Executive Vice President of Finance Eric du Halgouët confirmed that prices would rise across all divisions in the US beginning May 1, 2025. CEO Axel Dumas had signaled in February that any additional US tariffs would be passed on to American purchasers.

Importantly, a 10% tariff does not translate to a 10% retail increase. Tariffs are assessed on FOB (freight on board) value, which typically approximates half of retail pricing, making the actual markup more modest and complex to calculate. The adjustments apply only to the US market; pricing elsewhere remains unchanged, as Hermès maintains a wholesale price structure based on costs in France for all countries.

Hermès Birkin and Kelly bags in various leathers

What This Means for Handbag Shoppers

For US clients waiting on a coveted Birkin or Kelly offer, the window before May brought a last chance at pre-increase pricing. Handbags were among the earliest items repriced online, and the increases are expected to settle as the house finalizes numbers across categories. Hermès also addressed social media chatter about production origins, saying it has seen no meaningful change in Chinese consumer behavior despite viral discussions about dupes and authenticity.

Hermès mini Kelly Sellier 20 in Epsom leather

Outlook for 2025

Hermès targets single-digit growth for the year while monitoring geopolitical uncertainty. The group plans to add 1,000 to 1,500 employees, mainly in production, to meet demand generated by its expanding leather workshops. Continued investment in capacity, talent, and craftsmanship is positioned as the house's advantage as competitors confront a tougher luxury landscape.