0547 GMT - The increased U.S. tariffs may affect some Asian sportswear brands if they become permanent, Morningstar analyst Ivan Su writes in a note. The additional tariffs pose challenges for selected sportswear companies including Shenzhou International, Amer Sports and Asics, Su adds. Shenzhou International is a key supplier for major sportswear brands and 17% of its revenue comes from the U.S. with most of its products manufactured in Vietnam, he says. If Shenzhou International shares the higher tariff costs equally with its customers, that would have a 20% earnings impact in the worst-case scenario, he adds. Meanwhile, since Amer and Asics' U.S. margins are below group averages, the earnings impact will be capped at 15% for Amer and 10% for Asics, Morningstar estimates.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
(END) Dow Jones Newswires
April 03, 2025 01:47 ET (05:47 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.