Apparel, department stores struggling the most under US trade policy, analysis shows
U.S. apparel, footwear and department store retailers and brands are facing a tough road thanks to the country’s tariff-heavy trade policy.
As they sell through inventories acquired earlier this year, import duties will eat into their profitability, and, with little room to raise prices, revenue will grow 3% at most, according to a recent Moody’s Ratings report. The analysts led by Senior Vice President Christina Boni give the sector a negative outlook, stating “the consumer environment remains difficult.”
These retailers are “the most exposed to current tariffs and vulnerable to further increases,” Boni said.