BUZZ-Retail stocks tumble as Trump's China tariff threat looms

reuters11-07
BUZZ-Retail stocks tumble as Trump's China tariff threat looms

** Shares of retailers with import exposure to China fall after Donald Trump elected U.S. president

** In Feb, Trump said he would impose tariffs exceeding 60% on China if elected

** Shares of Target TGT.N down nearly 3%, while Walmart WMT.N down marginally

** Shares of online furniture retailer Wayfair W.N down 10%, Pottery Barn-parent Williams-Sonoma WSM.N down 4%, while RH RH.N down nearly 6%, while high-end furniture retailer RH RH.N down nearly 6%

** Home Depot HD.N and Lowe's LOW.N down about 3%

** Best Buy BBY.N, Mattel MAT.O and Hasbro HAS.O down over 5%

** Dollar Tree DLTR.N down 8%, Dollar General DG.N down 4%

** Tariffs are a key risk for retail (and many other sectors). Have limited conviction in companies' ability to take price post-pandemic to offset the tariff impact - Mari Shor, Senior Equities Analyst at Columbia Threadneedle Investments

** The common denominator is low pricing power and the potential for higher import prices which could indirectly squeeze margins down the road - Chuck Grom, managing director at Gordon Haskett Equity Research

** Shares of footwear makers Nike NKE.N and Crocs CROX.N and athletic apparel maker Lululemon LULU.N down about 2%

** "Nike will suffer significantly" from high tariffs as it doesn't manufacture in the U.S., unlike peers Under Armour and New Balance - Burt Flickinger, managing director at retail consulting firm Strategic Resource Group

(Reporting by Juveria Tabassum in Bengaluru)

((Juveria.Tabassum@thomsonreuters.com;))

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