Hermes to 'fully offset' tariff impacts, Q1 sales growth disappoints

(Sharecast News) - Luxury fashion retailer Hermes revealed on Thursday that it would "fully offset" the impact of Donald Trump's recently announced tariffs by hiking selling prices for all products sold in the US. Hermes said it will add a premium to all products sold in the US, in addition to its regular price adjustments, which were around 6%-7% this year.

Finance chief Eric du Halgouet said: " We are going to fully offset the impact of these new duties by increasing our selling prices in the United States from May 1, across all our business lines."

Hermes also delivered quarterly sales of €4.1bn, up 7% year-on-year at constant currency but still short of expectations for a 9.8% increase and down from the previous quarter's 18% growth.

Sales were up just 1.2% in Asia-Pacific excluding Japan, also missing expectations for a 4% increase, principally due to Chinese shoppers holding off on costly purchases amid a property market downturn and strong comparators.

As of 1000 BST, Hermes shares were down 1.86% at 2,319.0p.







Reporting by Iain Gilbert at Sharecast.com