Persistent Tariffs to Be Devastating to Hard-Line Retailers Such as Best Buy, Wayfair -- Market Talk

Dow Jones2025-04-10

1438 ET [Dow Jones]--The current tariffs scenario would be devastating to many hardline retailers if they are persistent, Wedbush analysts say in a research note. This mix would severely pressure earnings and points to unattractive risk/reward for most companies with high Asia sourcing exposure, limited pricing power and weak balance sheets. Some of these include Best Buy, Floor & Decor, Wayfair, Williams-Sonoma, Arhaus, RH, Dick's Sporting Goods and Academy Sports & Outdoors, the analysts say. However, there could also bring opportunities for hardline retailers if reciprocal tariffs are dialed back almost in their entirety, except for China and Europe, a scenario the analysts view as more likely. "We see trading opportunities to the upside in the most oversold names since 'Liberation Day' including RH, Wayfair, Floor & Decor and Arhaus." (sabela.ojea@wsj.com)

(END) Dow Jones Newswires

April 09, 2025 14:41 ET (18:41 GMT)

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