Macy's CEO Jeff Gennette says an increase of 25% to $ 300 billion in Chinese goods still considered by the White House, which would affect clothing and footwear, would probably trickle down and beat consumers.
"When you do math, it's hard to find a way through what would not affect the customers," he says. "It will affect many clothes and accessory categories," for both Macy's own brands and national brands, Gennette added. It would be difficult for Macy to come to a place "where you have no customer influence," he repeated.
He made comments after Macy's reported results for the first quarter that exceeded analysts' expectations, but sales fell a year ago, as Macy is still struggling ̵
Review continued to explain that the latest tariff increase, to 25% from 10%, $ 200 billion Chinese goods that came into force last Friday will hurt their furniture business, albeit not drastically.
"We have r strategies to mitigate [the impact on shoppers]"he said. "We believe these strategies will limit customers' concerns."
On Wednesday, Macy confirmed her profit prospects for 2019. But another round of fees could change that.
"This potential fourth part of the tariffs was not considered when we gave annual guidance," Review told analysts during a conference call.
Macy's shares, which initially increased 7% in premarket trading on Wednesday, lasted about 1.5%.