Hermès slows down… but raises prices in the United States
The House of Hermès continues to grow, but the momentum is waning. While results for the first quarter of 2025 remain positive, they confirm a clear slowdown compared to last year’s exceptional performance. And one decision comes as a surprise: an imminent price increase on the American market.
More measured growth
With sales of 4.1 billion euros, Hermès recorded an increase of +7.2% at constant exchange rates. A respectable performance, but far from the +15% target for 2024. Axel Dumas, the House’s managing director, refers to an uncertain economic and geopolitical environment, while reaffirming the importance of the fundamentals: quality, creation and vertical integration.
Sector by sector, leather goods remain the main driver (+10%), driven by the Médor and Mousqueton lines. Clothing and accessories gained +7%, textiles +5%, while perfumes stagnated. The only downside was a -10% decline in watchmaking, impacted by comparisons with a particularly festive Chinese New Year 2024.
United States: a strategic tariff increase
Growth in the Americas reached +11%, despite a tense context: fires in California, stores temporarily closed, and low inventories at the beginning of the year. Nevertheless, Hermès sees encouraging momentum, thanks in particular to a rebound in March.
But it is above all the announcement ofa price increase as of May 1 that attracts attention. Eric du Halgouët, the company’s CFO, justifies this decision with the additional cost of American customs duties(+10%). An increase designed to preserve margins without, in his view, undermining local momentum.
Asia slows down, Europe holds out
WhileAsia excluding Japan grew by only +1%, Japan (+17%), France (+14% ) and Europe (+13% ) showed reassuring strength. The China effect is waning, but Europe’s loyal customer base seems far more resilient to the current economic climate.
An assertive luxury strategy
Hermès remains true to its elitist positioning, preferring to adjust its prices rather than cut back on its standards. A coherent choice… but one to be watched in an unstable global climate.
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