Fort Worth, Texas – Pier 1 has matched its assortment against the Trump Administration’s proposed tariffs on Chinese goods and measured the potential impact.
The company issued a statement after reviewing the proposed 10% tariff on additional classes of products imported to the U.S. from China that announced by the Office of the U.S. Trade Representative on July 10.
Consistent with recent years, approximately 59% of the company’s fiscal 2019 net sales are expected to be derived from merchandise produced in China. Of that amount, approximately half is expected to consist of product classes subject to the proposed tariff,” the retailer said.
While Pier 1 is evaluating strategies to mitigate the impact of the proposed tariff, it said it does not expect financial results in fiscal 2019 to be materially affected.
“There can be no assurance as to the final scope of the proposed tariff or the course or timing of trade negotiations between the United States and China to resolve the issues which led the Office of the U.S. Trade Representative to announce the proposed tariff,” it noted.