New Hermès Prices for 2023: A Mixed Bag

As I reported last October, after Hermès CFO Eric du Halgouet told reporters about the early 2023 price increase, there was lot of talk about exactly how much the increase would be and on which products. Predictions hovered at around 5-10% in general, with the reasons cited for the increase including higher production costs (which includes both raw resources and Hermès’ production growth in the form of new workshops and craftsperson hiring/training) and currency fluctuations.

Impressive Sales Performance in 2022

This followed the announcement that Hermès’ 3rd quarter sales were up about 24% to over $3 billion (Hermès’ 2022 sales increase for the year was about the same percentage).

Although Asia accounted for the largest portion of Hermès’ revenue – almost half, which sounds impressive until you realize that Hermès prices in Asia are by far the highest; items in Asia are priced at about 30% higher than the same items in the US and nearly 60% higher than the same items in Europe – demand was higher in every market, especially in the United States, which has seen both large market growth and sIG if isn’t infrastructure expansion, including multiple new boutique openings and a brand new New York City Flagship.

New Prices Revealed for 2023

Well, the new prices have arrived; at the start of the year for Europe and at the beginning of February for the United States. While for leather goods, the price increases did hover generally around 5-10%, in some cases, they were significantly higher.