Bloomberg Businessweek ICYMI: Navigating Tariff Turmoil with Wayfair CFO Kate Gulliver & Optical Foundry CEO Rob Rich
Apr 7, 2025
In a thought-provoking discussion, Kate Gulliver, CFO of Wayfair, and Rob Rich, CEO of Optical Foundry, share their insights on navigating the turbulent waters of tariffs. They delve into the financial strategies necessary for adapting to rising costs, particularly the staggering 46% tariff on goods from Vietnam. The conversation also touches on the challenges of maintaining brand identity and profitability in a changing market. Both leaders emphasize the importance of supplier relationships and customer satisfaction as critical components for success in an evolving economic landscape.
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Tariff Impact
- Optical Foundry, selling eyeglasses, absorbed previous tariff increases.
- New tariffs, especially on Japanese imports, are too substantial to absorb.
US Manufacturing Barriers
- Shifting production to the US is not feasible for Optical Foundry due to cost and time constraints.
- US labor costs make domestic eyeglasses production uncompetitive.
Pricing Strategy
- Optical Foundry plans to fully reprice products next month if tariffs persist.
- The current inventory will last for about a month.