Trump's tariff promises have import-heavy retailers facing 'new reality'
Published On Nov 9, 2024, 8:38 AM
The article discusses how the proposed tariff increases under Donald Trump's presidency could significantly affect import-heavy retailers, particularly in the apparel and footwear sectors. Many companies, like Under Armour and Steve Madden, have expressed concerns about potential tariffs of 10%-60% on their products sourced from China, which constitutes a large part of their supply chains. While some companies have diversified their sourcing away from China to mitigate the impact, others may face increased costs or supply chain disruptions if these tariffs are implemented.
Stock Forecasts
UA
Negative
The retail and apparel sectors are likely to suffer from increased costs and supply chain challenges due to proposed tariff increases. This could lead to lower margins and reduced consumer spending, especially if companies pass on these costs to customers.
RL
Negative
Companies like Ralph Lauren and Wolverine Worldwide, who have diversified their sourcing, might be better positioned to weather the impact of tariffs. However, they still face significant pressure in the overall market environment which is becoming more uncertain due to trade policy.
TPR
Negative
The overall consumer sentiment could be negatively affected if tariffs lead to higher prices, possibly leading to lower sales for companies heavily reliant on imported goods from China.
Related News
Federal judge blocks luxury brand merger between Tapestry and Capri
Oct 25, 2024, 4:14 PM
A federal judge issued a ruling blocking the pending merger of luxury fashion brands Tapestry and Capri on the grounds it would undercut competition in the handbag market.
Tapestry-Capri Fashion Merger Is Blocked by Judge
Oct 24, 2024, 7:37 PM
The F.T.C. had sued to halt the merger of Tapestry, the parent of Coach and Kate Spade, and Capri, the owner of Versace and Michael Kors.
Red Lobster’s endless shrimp deal created ‘a lot of chaos,’ new CEO divulges on bankruptcy
Oct 7, 2024, 12:18 PM
The 35-year-old Red Lobster CEO Damola Adamolekun admits the $20 endless shrimp campaign was the main cause of the seafood chain's Chapter 11 bankruptcy.