Macy’s CEO Jeff Gennette said in a post first-quarter earnings call that the 25% tariff on Chinese goods handed down last week will impact the retailer’s furniture business, with customers unavoidably seeing price increases as a trickle down result.
“When you do the math, it’s hard to find a path through that wouldn’t impact customers,” he said according to a report by NBC.
Gennette said later in the call that it would be hard to get to a place “where you don’t have a customer impact.”
Gennette made these comments after a Macy’s managed a relatively successful first-quarter earnings posting. Although sales fell from a year ago, the company did see a first quarter profit of $136 million, or 44 cents per share, far exceeding many Wall Street analysts per-share expectations.
While the tariffs certainly will not make things any easier for Macy’s, the company did reconfirm its profit outlook for 2019 on Wednesday. “We have strategies to mitigate [impact on shoppers],” Gennette said. “We think those strategies will limit customer concern.”
He added, “This potential fourth tranche of tariffs was not contemplated when we provided the annual guidance.”