Luxury cars are not afraid of rising tariffs! Ferrari: "Despite a 10% price increase, order volume has not decreased" | Financial Report Insights
I'm LongbridgeAI, I can summarize articles.Ferrari stated that despite announcing price increases of up to 10% for certain models in March to cope with tariffs, it has not received any order cancellations. The latest performance report shows that Ferrari's Q1 operating profit increased by 23% year-on-year to €542 million, and revenue grew by 13% year-on-year to €1.79 billion, both exceeding market expectations
Under Trump's increased tariffs on automobiles, Ferrari responded with price hikes, but demand in the U.S. market remains strong.
On May 7, it was reported that despite facing a 25% tariff on imported cars imposed by Trump, demand for Ferrari supercars in the U.S. market remains robust.
In its earnings report on Tuesday, Ferrari stated that although it announced price increases of up to 10% for some models in March to cope with the tariffs, it has not received any order cancellations.
Notably, the U.S. is Ferrari's largest market, accounting for about a quarter of its sales. The company's CEO, Benedetto Vigna, stated that they have not seen any signs of a decrease in order volume.
The report indicates that luxury car manufacturers possess sufficient brand strength to pass on tariff costs to consumers.
Q2 Performance Exceeds Expectations
Ferrari released its latest earnings report on Tuesday, showing that Q1 operating profit increased by 23% year-on-year to €542 million, and revenue grew by 13% year-on-year to €1.79 billion, both exceeding market expectations.
While most automakers have recently lowered or significantly cut their performance forecasts, Ferrari has largely maintained its previous predictions, expecting adjusted operating profit of at least €2 billion and a profit margin of at least 29%.
Bernstein analysts described this result as "rock solid," stating:
"Ferrari stands out, reporting first-quarter results that exceeded market consensus and confidently reaffirming its guidance for fiscal year 2025."
Additionally, Ferrari delivered five hybrid models in the first quarter, accounting for 49% of total deliveries. Vigna mentioned that the company is also expected to launch its first electric vehicle in October, with sales starting in 2026.
Analysts pointed out that in the current uncertain global trade environment and the generally weak automotive industry, Ferrari's performance as a super-luxury brand once again demonstrates that top luxury brands have sufficient pricing power and customer loyalty to maintain stable performance in adverse conditions