“Steve Lamar, executive vice president of the American Apparel & Footwear Association, said on Sunday the new tariffs were “just in time for our most important selling season of the year. They claim that they are hurting China but, in reality, they are hurting us. Prices will go up, sales will go down, jobs will be lost.” Reuters
Last week was hot for retail stocks. Walmart, Lowes, Target, and many other well known names all did very well, but can this last? With new tariffs implemented on Sunday, retailers could experience tightening margins and a reduction to sales.
Revolve, a company highly reliant on China for manufacturing, disclosed in their prospectus that new tariffs could seriously affect their bottom line. This could present an excellent short opportunity under the right conditions, but don’t rush! Wait for the opportunity to present itself!
Check out our report from a few weeks ago.