Bloomberg Intelligence Trump Tariff Threat, Retail Earnings
Nov 26, 2024
Mary Ross Gilbert, a Senior Equity Analyst at Bloomberg Intelligence specializing in retail, dives into the current state of the retail sector. She highlights the contrasting fortunes of Kohl's and Abercrombie & Fitch, discussing the impact of weather and tariffs on consumer engagement. As holiday shopping approaches, she predicts a positive outlook for apparel sales driven by strong consumer demand. Additionally, the risk of impending tariffs and their strategic role in negotiations raises crucial questions about the retail landscape's future.
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Tariff Threats as Negotiation Tactics
- Trump's tariff threats target major US trading partners like China, Canada, and Mexico.
- These threats, while seemingly drastic, serve as negotiation tactics rather than concrete promises.
Contrasting Retail Performances
- Kohl's experienced declining sales due to execution issues, particularly with private-label items and catering to lower-income consumers.
- Abercrombie & Fitch, conversely, saw significant sales growth by focusing on consumer preferences and offering diverse categories.
Weather's Impact on Retail
- Weather significantly impacts retail sales, influencing consumer behavior and demand for specific categories like winter apparel.
- Despite varying performances, the holiday season looks promising due to consumer resilience and the appeal of holiday shopping.