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)
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