Steven Madden executives mentioned Thursday the shoe maker was working shortly to shift product sourcing out of China to different international locations after Donald Trump’s presidential election victory.
In February, Trump mentioned if he got here to energy, he would impose tariffs on China once more, which may exceed 60%, placing numerous pressure on retail firms that closely depend on imports from the area.
Steven Madden executives mentioned on a submit earnings name the corporate had already been engaged on the potential situation that may lead it to maneuver items out of China extra shortly, and been growing manufacturing unit bases in different international locations akin to Cambodia, Vietnam, Mexico and Brazil.
“Just under half of our current business would be potentially subject to tariffs on Chinese imports (if Trump decides to impose tariffs when he takes office in January),” an organization government mentioned.
“Our goal over the next year is to reduce the percentage of goods we source from China by approximately 40% to 45%,” the manager added.
Shares of Steven Madden rose 3.1% to $45.60 on Thursday.
