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Macy's CEO, Jeff Gennette, said that a 25% tariff increase on $ 300 billion worth of Chinese products still to study at the White House, which would have an impact on clothing and shoes, would probably have negative repercussions on consumers.
"When you do the math, it's hard to find a path that will not impact the customers," he said. "This will affect many categories of clothing and accessories," added Gennette, both for home brands and for Macy's national brands. It would be difficult for Macy to go to a place "where you have no customer impact," he repeated.
He made these comments after Macy's release of its first-quarter results exceeded analysts' expectations. But sales have dropped compared to a year ago, as Macy's still struggled – along with many clothing and malls retailers – to find ways to get the job done. attract buyers to the stores, while they could just buy from Amazon.
Gennette went on to explain that the latest tariff increase of $ 200 billion worth of Chinese goods put into effect last Friday, ranging from 25% to 25%, will hamper the furniture manufacturing sector, without being too harsh.
"We have strategies to mitigate [the impact on shoppers], "did he declare." We believe these strategies will limit customer concerns. "
Macy's reaffirmed Wednesday its earnings outlook for 2019. But another set of tariffs could change that.
"This fourth potential slice of tariffs was not considered when we provided annual guidance," Gennette told analysts at a conference call.
Macy's shares, which had climbed 7% on Wednesday in pre-trade, had risen by about 1.5%.
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