Jan 10, 2012

ALERT: Hermès Price Increase

Just 10 days into the new year, there is some sad (but not unexpected) Hermès news to report. The French luxury house is planning to implement a price hike very soon. How soon and how much? Well, that depends on who you ask. Reps at the flagship boutique on Madison Avenue say it will happen in early February while the Wall Street branch states January 24th as the date. I, for one, believe it will be a gradual increase with select items being hiked on the 24th of this month and the rest following suit thereafter. By mid-February, shoppers should see most items carrying a heavier price tag. Though the dates may vary, both Hermès boutiques do agree on how much of an increase it will be. Markups on their much esteemed leather bags (including Birkins & Kellys), accessories, scarves, and shoes will be roughly 9%. So, why an increase? According to a recent article in Bloomberg Businessweek, Hermès CEO Patrick Thomas states the fashion house may raise prices "at a reasonable level" in 2012 due to "significant" raw-material cost increases, particularly for silk, cashmere and crocodile skin. So there you have it. As disappointing as it is, US shoppers should still feel fortunate because price hikes have already taken place in Europe and parts of Asia. So, if you've been planning on purchasing something extravagant from Hermès, better make a move on it fast.

{Image credit: Hermès}

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