1230 ET - Apparel retailers will struggle to offset the rising costs of tariffs because consumers don't have extra discretionary funds to spend if prices go up, Bank of America analysts say. Retailers with an average consumer price of $20 would need to increase prices 5% to offset tariffs' hit to their gross margins, the analysts say. These risks will be sharpest for low-priced retailers like Five Below where consumers are already wary of paying more for discretionary items. Proposed tariffs are set to take effect Tuesday, but the margin hit will not show up until second-quarter earnings, analysts expect. (katherine.hamilton@wsj.com)
(END) Dow Jones Newswires
February 03, 2025 12:30 ET (17:30 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。