Steve Madden brand logo at the Premium Fashion Show.
Enscalane | Picture Alliance | Getty Images
Steve Madden It said on Thursday it would slash imports from China by 45% next year as President-elect Donald Trump fulfills his promise. Imposing high tariffs on imported products from other countries.
During the earnings call, CEO Edward Rosenfeld said the shoe brand has been “preparing for the possibility that we might have to move goods faster.” Out of China”. Over the past few years, the company has looked for factories in other countries, including Cambodia, Vietnam, Mexico and Brazil, he said.
“As of yesterday morning, we were implementing the plan,” he said Thursday. “You should expect that the proportion of goods we source from China will start to decline more quickly.”
Steve Madden imports about two-thirds of its business from the United States, Rosenfeld said. He said that “more than 70% of our goods currently come from China.” He said that means less than half of its business would be at risk of tariffs on Chinese imports.
“Our goal next year is to reduce the proportion of goods we source from China by about 40% to 45%, which means if we can achieve that and we think we have the plans to do that, a year from today, We’re looking at more than a quarter of our business being affected by potential tariffs on Chinese goods,” he said.
Trump is expected to pressure companies to move more production to the United States. During his presidential campaign, Trump said he would impose tariffs of 10% to 20% on all imported goods, with tariffs of up to 60% to 100% on goods from China.
Other retailers and brands have pushed to diversify sourcing due to a variety of factors, including a shrinking workforce due to China’s growing middle class and a shipping crisis as part of efforts to protect supply chains following disruptions from the coronavirus pandemic and the Red Sea.
Retail analysts and trade groups warn of proposed tariffs Could push up prices for U.S. consumers and soften spending.
Tarang Amin, CEO of cosmetics and skincare manufacturer Elf beautysaid it may have to raise prices on some goods if the tariffs take effect. He said the company has moved more production outside China since the first Trump administration began imposing tariffs.
for tapestry, The parent company of Coach and Kate Spade has less than 10% of its purchases from China, Chief Financial Officer Scott Roe said on an earnings call Thursday. He said the maker of handbags, apparel and accessories was watching tariffs closely but had plenty of practice in remaining flexible.
“Oh my gosh, we’ve had so many disruptions and challenges that have forced us to adjust based on port strikes and freight routes, whatever they are, tariff regimes change over time,” he said. “So we’re pretty good at that. manage this problem.”
—CNBC’s Gabrielle Fonrouge contributed to this report.
