By
Bloomberg
Printed
February 27, 2025
As a number of the world’s largest corporations report earnings, one subject is dominating the dialog: tariffs.
Wrangler
It’s been onerous for companies to dodge tariff-related questions from analysts this earnings season, however many have to date downplayed the impression.
“We went through tariffs in the first President Trump administration,” Donald Allan, chief govt officer for Stanley Black & Decker Inc., mentioned on a Feb. 5 earnings name. “We figured out how to navigate it back then. And we’ve built some muscle.”
Some have been extra blunt of their assessments. Shoe retailer Steven Madden Ltd. plans to lift costs this 12 months. Kontoor Manufacturers Inc. — maker of the Lee and Wrangler denims — is mulling doing the identical. Others together with Chinese language fast-fashion big Shein are adjusting their provide chains to mitigate a number of the impression.
“We are cautious on our outlook for 2025 as we face meaningful near-term headwinds,” Steve Madden CEO Edward Rosenfeld mentioned on the corporate’s earnings name Wednesday. “Most notably, our earnings will be negatively impacted by new tariffs on goods imported into the United States and by our efforts to aggressively diversify production out of China.”
It’s not solely on Wall Road that tariffs have been high of thoughts. Gauges of shopper sentiment have dipped this month largely as a result of expectations that Trump’s levies will translate into increased costs. Lengthy-term inflation views now stand on the highest degree in nearly 30 years, information from the College of Michigan confirmed final week.
“The consumer right now is confused,” Kontoor CEO Scott Baxter mentioned through the firm’s quarterly name with analysts Tuesday. “If you just put yourself in their seat, they’re worried about work. They’re worried about the businesses that they’re in. Are those going to be impacted by some of the layoffs, the tariffs, the current situation right now?”
