Devastating Tariffs Could Help Off-Price and Kohl's Slowdown
NIKE AND ADIDAS CALL ON TRUMP TO REMOVE FOOTWEAR TARIFF
The footwear industry has come out against the latest list of proposed tariffs, asking in a letter to U.S. President Donald Trump for footwear to be taken off the list and calling the duties "catastrophic" for the industry. More than 170 brands, including Nike, Adidas, Aldo, Under Armour and Reebok , signed the letter, which was shared yesterday by the Footwear Distributors and Retailers of America (FDRA).
"As an industry that faces a $3 billion duty bill every year, we can assure you that any increase in the cost of importing shoes has a direct impact on the American footwear consumer," the letter reads. "It is an unavoidable fact that as prices go up at the border due to transportation costs, labor rate increases, or additional duties, the consumer pays more for the product."
HEADPHONES MILLENNIALS LOVE Just in time for summer concerts and music festivals, a new line of wireless headphones have hit the market that mimic one of millennials' favorite accessories — the flower crown. The headphones are marketed to women, and are designed to "fit a woman's frame more comfortably," the company says. The earpieces themselves are smaller than those on typical unisex headphones, and the headphones are made with "luxe vegan leather" for a more comfortable fit. Read More |
KOHL'S FEELS THE IMPACT OF A SLOW ECONOMY After kicking off the fiscal year on a somber note, the question for Kohl's now centers around recovery. Has it stalled for good, or is this just a temporary downturn in performance? The weaker demand coincided with modestly higher operating costs and resulted in some discounting. These things, along with an impairment charge, had a negative impact on the bottom line, whereby operating income fell by a sharp 44%. Fortunately, lower interest and tax expenses meant net income declined by a less dramatic 17.3%. Read More |
OFF-PRICE TO BENEFIT FROM TRUMP TARIFFS
TJ Maxx and Marshalls are preparing to benefit from tariffs. In a call with investors , the CEO of TJX Companies said that while the company is closely monitoring the negative impact of tariffs, they could also create some opportunity for the company.
"There's a lag, but there is a silver lining for us," TJX CEO Ernie Herrman says. In this case, Herrman thinks that if tariffs are imposed on another $300 billion worth of Chinese goods and retailers are forced to raise prices to cover the costs, shoppers could flock to off-price stores for value.
DRESSBARN CLOSES THE STABLE
Dressbarn, the 57-year-old women’s apparel chain, announced it is winding down operations, including the eventual closing of its approximately 650 stores. The retailer, which is owned by Ann Taylor and Lane Bryant parent company Ascena Retail Group, has retained A&G Realty Partners to assist on real estate-related matters.
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THIS WEEK'S BRIGHT SPOT
Liketoknow.it is cashing in on YouTube’s fashion push. Its YouTube channel will be a curated entertainment shopping channel featuring members of its influencer network. Viewers will be able to shop the YouTube videos via links housed in the description box. The videos will also live on Liketoknow.it’s app — on each influencer’s profile page — and can be imported to the influencers’ blogs.
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