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Macy's says tariffs will dent its furniture business

Credit: Reuters Studio
Published on May 15, 2019 - Duration: 01:06s

Macy's says tariffs will dent its furniture business

Macy's CEO also said additional U.S. trade leveies on Chinese goods would leave its clothing and accessory business vulnerable.

Fred Katayama reports.

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Macy's says tariffs will dent its furniture business

The U.S.-China trade war will soon impact Macy's.

CEO Jeff Gennette said the recently announced tariff hike on $200 billion worth of Chinese goods will hurt the department store chain's furniture business.

President Donald Trump has threatened to slap tariffs on all remaining Chinese imports, another $325 billion worth of goods.

That, Gennette says would impact Macy's private and national brands as well, leaving its clothing and accessories categories vulnerable.

He said the company is working hard on moving production out of China.

Earlier Wednesday, Macy's reported rising same-store sales and profit that beat Wall Street's forecasts, benefiting from a boost in online sales.

Despite those results, Macy's shares declined as did those of other department stores including Nordstrom, Kohl's and J.C.

Penney.

Investors sold shares of retailers after seeing the weak economic data that came out Wednesday.

Retail sales unexpectedly fell in April as households cut back on buying cars and other goods.

That prompted Morgan Stanley to cut its consumer spending growth estimate for the second quarter and lower its GDP growth estimate.

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