Retail stocks tumble as Trump's China tariff threat looms
** Shares of retailers with import exposure to China fall after Donald Trump elected U.S. president
** In Feb, Trump said he would impose tariffs exceeding 60% on China if elected
** Shares of Target TGT.N down nearly 3%, while Walmart WMT.N down marginally
** Shares of online furniture retailer Wayfair W.N down 10%, Pottery Barn-parent Williams-Sonoma WSM.N down 4%, while RH RH.N down nearly 6%, while high-end furniture retailer RH RH.N down nearly 6%
** Home Depot HD.N and Lowe's LOW.N down about 3%
** Best Buy BBY.N, Mattel MAT.O and Hasbro HAS.O down over 5%
** Dollar Tree DLTR.N down 8%, 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 and athletic apparel maker Lululemon LULU.N down about 2%
** "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 in Bengaluru
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
