Retail stocks tumble as Trump's China tariff threat looms
Updates
** Shares of retailers with import exposure to China fall after Donald Trump elected U.S. president
** Trump said in February he would impose tariffs exceeding 60% on China, if elected
** Shares of Target TGT.N down ~3%, while Walmart WMT.N down marginally
** Online furniture retailer Wayfair W.N drops ~15% to a near year-and-a-half low, Williams-Sonoma WSM.N down 5%, RH RH.N down ~5%
** Home Depot HD.N and Lowe's LOW.N down over 3% each
** Best Buy BBY.N, Mattel MAT.O and Hasbro HAS.O fall over 5% each
** Dollar Tree DLTR.N down 8%, while Dollar General DG.N down 4%
** Tariffs are a key risk for retail (and many other sectors). Have limited conviction in companies' ability to take price post-pandemic to offset the tariff impact - Mari Shor, senior equities analyst at Columbia Threadneedle Investments
** The common denominator is low pricing power and the potential for higher import prices, which could indirectly squeeze margins down the road - Chuck Grom, managing director at Gordon Haskett Equity Research
** Shares of footwear makers Nike NKE.N and Crocs CROX.N as well as apparel maker Gap GAP.N down ~3% each
** "Nike will suffer significantly" from high tariffs as it doesn't manufacture in the U.S., unlike peers Under Armour and New Balance - Burt Flickinger, managing director at retail consulting firm Strategic Resource Group
Reporting by Juveria Tabassum and Savyata Mishra in Bengaluru
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