Macy's : CEO says recent tariffs to impact furniture business
May 15, 2019 at 10:10 am EDT
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(Reuters) - Macy's Inc said on Wednesday the recent hike in U.S. tariffs on Chinese goods will hurt its furniture business of the department store operator.
U.S. President Donald Trump escalated the trade war by raising tariffs on $200 billion worth of Chinese goods to 25% from 10% last Friday. This was in addition to the already imposed 25% tariff on $50 billion worth of Chinese imports.
Macy's Chief Executive Officer Jeff Gennette said the potential fourth tranche of tariffs that would be placed on all Chinese imports will impact both its private and national brands.
"This potential fourth tranche of tariffs was not contemplated when we provided the annual guidance," Gennette said on a post-earnings call.
Shares of the company, which rose about 2%, fell 1%.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Arun Koyyur)
Macy's, Inc. is an omni-channel retail company. The Company operates stores, websites and mobile applications under three brands, Macy's, Bloomingdale's and Bluemercury, which sell a range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in 43 states, the District of Columbia, Puerto Rico and Guam. Its operations are conducted through Macy's, Macy's Backstage, Macy's small format, Bloomingdale's, Bloomingdale's The Outlet, Bloomie's, and Bluemercury. In addition, Bloomingdale's in Dubai, United Arab Emirates and Al Zahra, Kuwait are operated under a license agreement with Al Tayer Insignia. The principal private label brands offered by the Company include Alfani, And Now This, Aqua, Bar III, Belgique, Cerulean 6, Charter Club, Club Room, Epic Threads, Family PJ's, first impressions, Giani Bernini, Holiday Lane, Home Design, Hotel Collection, Hudson Park, Ideology, and others.