By Suzanne Kapner
Citi lowered its earnings estimates for half-a-dozen clothes and shoe companies, including Columbia Sportswear, Levi Strauss, VF, Ralph Lauren and Calvin Klein parent PVH, due to looming higher tariffs and a weaker macroeconomic backdrop.
"Under the new tariff plan as currently outlined, apparel companies will be hard hit," Citi analyst Paul Lejuez said, noting that most of the firms source their products in Asian countries facing high tariffs.
"We do not believe these companies have enough pricing power to offset these higher costs, and for those that try to raise prices to offset cost increases, we generally expect this to result in weaker demand."
Levi is due to report results late Monday, as first-quarter earnings begin to roll in.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
April 07, 2025 11:11 ET (15:11 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.