As tariffs take hold in the U.S. with a blanket levy for all imported goods imposed from April 5, Hermès International will up its prices to correspond with the 10 percent tax starting May 1.

“The increase of price will be across all the different metiers,” said head of investor relations Carole Dupont-Pietri in a conference call with analysts on Thursday morning.

The percent price rise will only apply to the U.S. market. “It’s aimed at offsetting the increase in tariffs that only applies to the American market, so there won’t be price increases in the other regions,” she said.

Du Halgouët indicated that number was slower than expected due to “climate events,” including the fires in Los Angeles, which saw the closure of Hermès’ Beverly Hills and Topanga stores, as well as the blizzard in Florida. Both events occurred in January, when the company was also impacted by tight stock in the U.S. after a booming holiday period.

He noted an acceleration in March in the U.S. and that continued to climb in the first two weeks of April, despite the downturn in consumer sentiment and economic uncertainty. Sales were up following stock replenishment even as it implemented a 6 percent price increase, indicating Hermès believes its ultra-wealthy client base can weather the coming tariff storm.

Bernstein analyst Luca Solca believes that Hermès’ brand value is strong enough to withstand any additional increases.

“I think this is the course of actions most brands will take. It seems the most rational approach to adjust to the new environment,” he told WWD. With its France-based production, Hermès is slightly more exposed than rival Louis Vuitton, which produces some products in the U.S.

But an increase should not dent its desirability. “I don’t see a reputational risk for the brand,” he added.

Looking at the first quarter, Hermès registered slowing but steady growth at 7.2 percent at constant exchange rates to 4.13 billion euros. The numbers fell slightly short of analysts’ expectations, which had pegged sales at 8 percent to 4.2 billion euros in the quarter.

Company sales were up 9 percent with currency fluctuations taken into account, which boosted the company’s bottom line by 49 million euros in revenue.

While Hermès has outpaced its French luxury rivals such as LVMH Moët Hennessy Louis Vuitton, which reported first-quarter sales down 2 percent on Monday, it marks a deceleration from the fourth quarter, when Hermès’ sales grew 18 percent.

The result “confirms a slower consumer demand environment,” Solca added in a note.

Du Halgouët emphasized that sales boosts in “mature markets” such as the U.S., Europe and Japan were driven by volume increases — not price jumps — and loyal clients.

Sales in Europe, excluding France, were up 13 percent, while sales in Japan rose 17 percent at constant currency.

“It’s worth highlighting this, because in these complicated times, local customer bases play a very important role for the growth of the group,” du Halgouët said. “It’s only in China where things are a bit more complicated.”

Despite what he categorized as a “very good” Chinese New Year on par with last year’s holiday sales, Hermès sales were up just 1 percent on continued consumer weakness.

Macao and Hong Kong have been impacted by a downturn of local tourists, with fewer continental Chinese traveling in the region, and those that do staying on the mainland and shopping in Shenzhen.

Du Halgouët said that while the real estate market remains stagnant and exports are “facing difficulty” in the face of U.S. tariffs, he sees a ray of hope. “When it comes to consumption, the Chinese government has implemented a number of policies which we believe will be positive,” he said.

Du Halgouët was referring to China’s ambitious plan to “vigorously boost consumption” by adjusting the minimum wage to promote income growth, as well as bring in subsidies for young families and promoting new sectors such as AI and sports tourism. Those plans were announced in March.

“Consumption is the third pillar of China’s economy, and it seems to be about to look much better,” he added.

Hermès will promote alternative categories including jewelry and ready-to-wear in an effort “to allow us to keep revenue levels at where they were last year,” du Halgouët said. He added the company has not seen any changes in consumer sentiment toward Hermès products due to the proliferation of “dupes” that have been popular on TikTok and Douyin.

In its home country of France, Hermès sales gained 14 percent in the first quarter, which the company chalked up to “sustained local demand and dynamic tourist flows.” The Saut Hermès horse jumping competition, held at the Grand Palais in Paris on March 25, brought clients out in droves. Customers from the U.S. and the Middle East were the biggest buyers.

Sales within the Middle East region also continued to gain momentum, up 14 percent at constant currency, while Japan saw sales jump 17 percent in the quarter, driven by local clients.

For the leather goods division, sales at constant currency increased 10 percent, boosted by the new bag designs Médor and Mousqueton, while sales of Hermès ready-to-wear continued to be a dark horse in the house, up 7 percent in the quarter.

Silk and textiles, which includes Hermès’ famous scarves, were up 5 percent, while jewelry gained 6 percent.

Sales in the fragrance and beauty division were flat, despite the addition of a new fragrance and a new lipstick line, including limited-edition shades.

Watches were the weakest link, with the category down a sharp 10 percent in the quarter, despite the introduction of two new models during the Watches and Wonders in Geneva, and updated version of its classic H08.

Hermès is continuing its factory expansion and will open three new production facilities in France over the next three years. It’s looking to hire about 1,500 new employees.

Du Halgouët struck a steady-as-she-goes tone, saying: “We’re growing across all regions and in these uncertain times, the loyalty of our customer base is crucial. [It’s] likewise, for the quality of our products and the commitment of our teams that allow us to prepare for economic and geopolitical uncertainties with some confidence.”

The call was “reassuring,” Barclay’s analyst Carole Madjo said in a note. “Overall, management struck a confident tone.”

“In a complex geopolitical and economic context, the house is strengthening its fundamentals more than ever,” Hermès chief executive officer Axel Dumas said in a statement.

“In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates,” the company added.