Retail stocks set to bypass tariff woes but face aftershock risk

NEW YORK - Shares of U.S. retail and consumer goods companies appear set to emerge largely unscathed from the trade dispute between the United States and China.

Only certain categories of consumer goods, such as furniture and accessories like handbags and luggage, are subject to the 10 percent tariffs. Apparel and footwear, for now, are excluded. Yet companies have made preparations to blunt the effects of current and possible future tariffs. In conference calls, companies including footwear maker Steven Madden Ltd, furniture retailer RH and Rubbermaid housewares maker Newell Brands have said they have offset cost increases by moving some manufacturing to other countries or negotiating discounts for their production in China.

The advance shipments could lead to an uptick in warehousing costs, cutting into companies’ profit margins, said Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation in Washington.

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