Pier 1 says no material impact expected from proposed tariff


Furniture / Tips 703 Views

Clint Engel, July 25, 2018

FORT WORTH, Texas — Pier 1 Imports said Tuesday it doesn’t expect its financial performance to be impacted much by the proposed tariff on Chinese imports even though nearly 60% of its sales come from Chinese-made goods.

The Top 100 company was among the latest home furnishing chains to provide commentary on the impact of the 10% tariff on more than $200 billion in Chinese imports proposed by the Office of the U.S. Trade Representative earlier this month.

About 59% of Pier 1’s net sales for this fiscal year are expected to be derived from Chinese import, consistent with recent years, the Fort Worth, Texas-based company said. Of that amount, about half is in the product classes subject to the proposed tariff.

“The company is evaluating strategies to mitigate the impact of the proposed tariff, including collaborative efforts with its vendor partners, and does not expect financial results in fiscal 2019 to be materially affected,” Pier 1 said.

“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” to the proposed tariff announcement.

Earlier this month, luxury home furnishings retailer RH and At Home Group indicated that a significant portion of their sales come from Chinese sources, but neither expected results to be materially impacted. Both said they can mitigate any impact through supplier negotiations and other measures.