Maison Margiela, Diesel, Jil Sander & More May See up to 9 Percent Price Hikes Due to Tariffs
OTB Group CEO Ubaldo Minelli said “Simulations indicate that to balance the impact we would have to increase prices by 8-9 percent for the group overall,” at an event today.
Summary
- OTB Group, which owns Maison Margiela, Diesel, Jil Sander, Marni, and more, may increase prices by 8-9% for the group overall if new US tariffs take effect.
- OTB CEO Ubaldo Minelli said, “We are evaluating, brand by brand, possible actions to reduce the impact.”
On Monday, OTB Group commented on possible price increases across its brands if US President Donald Trump’s controversial tariffs go into effect. According to Reuters, the Italian conglomerate, parent to Maison Margiela, Diesel, Jil Sander, Marni, Amiri, and more, is presently evaluating the impact of the tariff increases on price points across the group overall.
At a press conference regarding the brand’s new sustainability report, OTB CEO Ubaldo Minelli said, “We are evaluating, brand by brand, possible actions to reduce the impact.” “Simulations indicate that to balance the impact, we would have to increase prices by 8-9 percent for the group overall,” he continued later.
The group now joins a growing list of brands from different sectors of the fashion industry who are warning customers and investors about the possible changes. Some of the first companies to announce price increases are the ones who will be hit the hardest, particularly companies that rely on manufacturing in China, where Trump has imposed a 145% tariff increase.
In April, Temu and Shein shared similar statements warning customers that prices would rise at the end of April “due to recent changes in global trade rules and tariffs.” But now, even on the far end of luxury, brands are considering price hikes to offset increased costs. On April 17, Hermes announced their increases, saying, “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,” to BoF.
As of the time of writing OTB has not announced an official price increase strategy or when it may take place. Stay tuned to Hypebeasts for updates and further developments in the luxury industry.
