Tariffs have become a major buzzword on retail companies’ earnings calls. But on a recent episode of Yahoo Finance’s Opening Bid podcast, BMO Capital Markets retail analyst Simeon Siegel argued investors’ emphasis on tariffs may be overdone, Yahoo Finance’s Grace Williams writes.
“We’re focusing on tariffs too much,” Siegel told Yahoo Finance Executive Editor Brian Sozzi. “From a pure business perspective, a tariff is just a cost input going up.”
Siegel covered retail during the first Trump administration when tariffs impacted the medical, solar, and steel industries. However, this time around, tariffs are expected to substantially affect retailers.
Tariffs have sent retail execs at Gap (GAP), Polo Ralph Lauren (RL), Williams Sonoma (WSM), and others to sourcing out of China to contain costs.
“It’s a pressure point,” Ralph Lauren CEO Patrice Louvet told Sozzi at the World Economic Forum in late January. “But again, I think we can work through it, and we can manage it.”
Read more here.
发表回复