An Apparel Retailer’s Strategy for Mitigating the Impact of Tariff
Published Date: 2019/09/13
Tailored Brands, Inc., headquartered in Houston, TX, engages in the retail of men's suits and the provision of tuxedo rental in the United States and Canada.
What's Tailored Brands' strategy? Earnings Intelligence analysis of their latest earnings transcript reveals the following:
“… the first three lists of tariffs largely do not impact the goods we source and any financial impact from those tariffs is immaterial.”
“ … but we believe we can absorb the list for tariffs within the existing product cost structure with minimal impact to the bottom-line this year. This is due to both diversifying our sourcing and working with our vendor partners in China to help mitigate the impact of the tariffs. We had already reduced the percent of direct source product from China … For 2019, we expect to lower that further …”