Macy’s CEO says furniture business, consumers will be impacted by Chinese tariffs

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.”

Source: http://www.casualliving.com/rss/53-garden-decor/

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