Latest news with #Babylist
Yahoo
15-05-2025
- Business
- Yahoo
Walmart's warning for pricier baby strollers, electronics, and toys could be bad news for Best Buy, Mattel, and others
Walmart's (WMT) tariff warning on Thursday could be a red flag for the fortunes of other retailers. "More discretionary retailers may face a murkier outlook than Walmart," CFRA analyst Arun Sundaram told Yahoo Finance. "Given how fluid the tariff situation is, we may even see some of these retailers pull guidance altogether." America's largest retailer reported mixed numbers in its first quarter report on Thursday and said tariffs have already led to price increases in April and May. It reiterated its fiscal year guidance and said it expects net sales for the second quarter to increase 3.5% to 4.5%. However, it did not provide guidance for adjusted earnings or operating income for Q2. "A lot of the price increases that we've talked about with tariffs have not taken effect yet. We'll begin to see some of this as we get into the back half of May ... then also in a more pronounced fashion in June," CFO John David Rainey told Yahoo Finance (video above). Categories most impacted include electronics, toys, vacuum cleaners, baby strollers, and car seats, he said. Read more: What Trump's tariffs mean for the economy and your wallet Walmart is sending a warning signal to Wall Street that "the full impact of tariffs probably haven't been actually flowing through the economy yet," Morningstar analyst Noah Rohr told Yahoo Finance. The recent pullbacks by the Trump administration won't be enough to alleviate the effects. Tariffs on China have dropped from 145% to 30%, while so-called reciprocal tariffs have been suspended for a 10% universal duty, but rates are still much higher than historically. That could mean 2025, especially the back-to-school season, may not be as strong as retailers had hoped, especially for chains like Best Buy (BBY). About 55% of what Best Buy sells is sourced through China, and another 20% comes from Mexico. Its shares have tanked 15% this year. Entering 2025, many on the Street were optimistic that Best Buy would be boosted by the replacement cycle kicking in around laptops, notebooks, and phones as AI features ramp up and consumers upgrade after the pandemic spending spree of 2020. Rohr said it's "probably fair to assume that prices for those electronics and appliances and things will go up and potentially delay the replacement cycle ... that will persist at least in the near term." In early March when tariffs on China were 20%, Best Buy CEO Corie Barry said on the company's earnings call that if the initial 10% tariff on China were to stay in effect, it would have a "negative impact in the ballpark of 1 point of comparable sales." The second quarter to fourth quarter results would show the brunt of that, she said. Parents could also feel the brunt. Rainey pointed out baby strollers and car seats as a category where prices would be increasing. 97% of strollers and 87% of car seats are made in China, per baby registry website Babylist. Newell Brands (NWL), which is behind the Graco brand, is navigating the situation carefully, according to Reuters. Its stock has plunged 40% year to date. Toy maker Mattel's (MAT) CEO Ynon Kreiz told Yahoo Finance his company will aim to raise prices in the US and move production out of China to other countries with lower tariffs. As Brian Sozzi reported, the company currently relies on China to produce less than 40% of its toys but also imports from Indonesia, Malaysia, Mexico, and Thailand. Target (TGT) is also in the hot seat. It imports about half of its US sales, which includes products from China. "In terms of our owned brand production, we've reduced what we source from China from roughly 60% in 2017 to around 30% today and on our way to less than 25% by the end of next year," Target chief commercial officer Rick Gomez told investors last quarter. Morningstar's Rohr said the "second and third quarter will be interesting to watch," especially given Target's exposure to highly discretionary items, with the first quarter likely already showing that retail is "under pressure." Its stock has dropped 30% in 2025. — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Walmart's warning for pricier baby strollers, electronics, and toys could be bad news for Best Buy, Mattel, and others
Walmart's (WMT) tariff warning on Thursday could be a red flag for the fortunes of other retailers. "More discretionary retailers may face a murkier outlook than Walmart," CFRA analyst Arun Sundaram told Yahoo Finance. "Given how fluid the tariff situation is, we may even see some of these retailers pull guidance altogether." America's largest retailer reported mixed numbers in its first quarter report on Thursday and said tariffs have already led to price increases in April and May. It reiterated its fiscal year guidance and said it expects net sales for the second quarter to increase 3.5% to 4.5%. However, it did not provide guidance for adjusted earnings or operating income for Q2. "A lot of the price increases that we've talked about with tariffs have not taken effect yet. We'll begin to see some of this as we get into the back half of May ... then also in a more pronounced fashion in June," CFO John David Rainey told Yahoo Finance (video above). Categories most impacted include electronics, toys, vacuum cleaners, baby strollers, and car seats, he said. Read more: What Trump's tariffs mean for the economy and your wallet Walmart is sending a warning signal to Wall Street that "the full impact of tariffs probably haven't been actually flowing through the economy yet," Morningstar analyst Noah Rohr told Yahoo Finance. The recent pullbacks by the Trump administration won't be enough to alleviate the effects. Tariffs on China have dropped from 145% to 30%, while so-called reciprocal tariffs have been suspended for a 10% universal duty, but rates are still much higher than historically. That could mean 2025, especially the back-to-school season, may not be as strong as retailers had hoped, especially for chains like Best Buy (BBY). About 55% of what Best Buy sells is sourced through China, and another 20% comes from Mexico. Its shares have tanked 15% this year. Entering 2025, many on the Street were optimistic that Best Buy would be boosted by the replacement cycle kicking in around laptops, notebooks, and phones as AI features ramp up and consumers upgrade after the pandemic spending spree of 2020. Rohr said it's "probably fair to assume that prices for those electronics and appliances and things will go up and potentially delay the replacement cycle ... that will persist at least in the near term." In early March when tariffs on China were 20%, Best Buy CEO Corie Barry said on the company's earnings call that if the initial 10% tariff on China were to stay in effect, it would have a "negative impact in the ballpark of 1 point of comparable sales." The second quarter to fourth quarter results would show the brunt of that, she said. Parents could also feel the brunt. Rainey pointed out baby strollers and car seats as a category where prices would be increasing. 97% of strollers and 87% of car seats are made in China, per baby registry website Babylist. Newell Brands (NWL), which is behind the Graco brand, is navigating the situation carefully, according to Reuters. Its stock has plunged 40% year to date. Toy maker Mattel's (MAT) CEO Ynon Kreiz told Yahoo Finance his company will aim to raise prices in the US and move production out of China to other countries with lower tariffs. As Brian Sozzi reported, the company currently relies on China to produce less than 40% of its toys but also imports from Indonesia, Malaysia, Mexico, and Thailand. Target (TGT) is also in the hot seat. It imports about half of its US sales, which includes products from China. "In terms of our owned brand production, we've reduced what we source from China from roughly 60% in 2017 to around 30% today and on our way to less than 25% by the end of next year," Target chief commercial officer Rick Gomez told investors last quarter. Morningstar's Rohr said the "second and third quarter will be interesting to watch," especially given Target's exposure to highly discretionary items, with the first quarter likely already showing that retail is "under pressure." Its stock has dropped 30% in 2025. — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
Parents face price hikes on strollers and car seats as tariffs bite retailers
The stock market rallied on news of a partial trade truce between the U.S. and China but, for consumers, the pain remains very real. That's especially the case for new and expecting parents, who are confronting stiff hikes on items like strollers and high chairs as companies raise prices in the face of economic uncertainty. Safety essentials, in particular, will cost "quite a bit" more under the tariff policies, according to Babylist, a registry platform. And while the Trump administration's refrain to "buy American" may seem simple, it isn't practical for current new parents. Almost all strollers—97%—are manufactured in China, while 87% of car seats are. Unless parents buy secondhand, which can raise its own set of safety issues, they are likely to pay much more. More broadly, every baby product could be impacted by the trade war, according to Babylist. That includes: cribs and bassinets, nursery furniture, high chairs, baby clothes and shoes, toys, play gyms, diaper bags, monitors, and European-made formula, among others. While the Trump administration has lowered the 145% tariffs on imports from China to 30% for the next 90 days, some popular baby brands, including stroller company Mockingbird, high chair company UPPAbaby, and sleep tent-producer Slumberpod, have already increased prices or plan to in the next few days. "Please know, we've also explored options to make our products locally (not just recently, but several times throughout the lifetime of our company)," Mockingbird wrote when it announced plans to increase prices. but "very few manufacturers in the world have the expertise to produce high-quality baby products and test them according to our rigorous safety standards—and with your little ones sitting in our strollers and high chairs, maintaining these standards is our top priority." The price hikes are happening at the same time that the Trump administration is encouraging Americans to have more children, with the administration reportedly soliciting ideas that include a $5,000 "baby bonus." Higher prices on baby goods is a major safety issue, according to the Juvenile Products Manufacturers Association, a national non-profit trade organization representing the prenatal to preschool industry. In a letter to the president sent in February, the organization urged him to exclude all juvenile products from Chinese import tariffs because there are simply not safe alternatives made elsewhere. "A global supply chain allows the U.S.-based companies that design these lifesaving products to search the world to bring the best mix of product quality and value to parents and caregivers by working with suppliers that have specialized capabilities," the letter reads. "The death of even one American child due to unavailability of affordable lifesaving baby products is too many." Democratic members of Congress have also asked for an exemption from the tariffs for baby gear, and Treasury Secretary Scott Bessent said last week he would consider one. But so far, an exemption hasn't materialized. But in a letter to the Trump administration, lawmakers pointed out that child car seats are legally required for children traveling in vehicles in all 50 states. Families shouldn't have to pay more to comply with the law, they wrote. "For parents, car seats, high chairs, strollers, and cribs are not optional purchases—they are necessities," the letter reads. "American families should not be forced to choose between their livelihoods and reliance on poor-quality baby gear." Beyond essentials like strollers and cribs, the toy industry is poised for particular challenges under Trump's tariff policies. That's because some 80% of the toys sold in the U.S. are sourced from China, according to the Toy Association, a national industry group. A recent survey from the group finds that 80% of midsize companies and 64% of small companies are canceling orders, while 87% of midsize companies and 81% of small companies are delaying orders. That could have a huge impact on the holiday shopping season with far fewer toys on shelves, as companies typically begin making those orders now. Tariffs have "frozen the toy production supply chain," the Toy Association's survey says. Because 96% of American toy companies are small or medium sized, according the organization, many will not be able to withstand the price increases and could even be forced out of business. That said, large toymakers will be hit as well. Mattel Inc., which produces Barbie dolls and Hot Wheels cars, among other toys, said last week that it will have to raise prices "where necessary" due to Trump's tariffs. Some 40% of Mattel's global production currently occurs in China. This story was originally featured on
CBS News
09-05-2025
- Business
- CBS News
Raising a kid in the U.S. was already expensive. Tariffs could add $1,000 to the bill.
President Trump's tariffs are hiking baby product prices. Here's how much you could spend. President Trump's tariffs are making it a lot more expensive to have kids, parents and baby gear makers say. Sweeping levies imposed by Mr. Trump in April are hiking the prices of baby essentials, including car seats and strollers, amounting to a tax on parents, advocates for reducing costs for families say. At the same time, the White House is trying to encourage Americans to have more children. Mr. Trump is even considering a $5,000 "baby bonus," according to a New York Times report, to boost the U.S.' declining birth rate. New parents and couples that are expecting could soon face tariff-related cost increases of up to $1,000 a year on baby essentials, according to Natalie Gordon, the CEO of Babylist, a baby registry service. Gordon noted that price increases are already in effect across a range of products, given manufacturers' reliance on China to produce strollers, cribs, car seats and other required goods. Currently, an import duty of up to 145% applies to U.S. imports from China, where the vast majority of strollers sold in the U.S. are made. Mr. Trump on Friday signaled that the rate could come down, writing in a post on his social media platform Truth Social that an "80% Tariff on China seems right!" Calling for a reprieve Gordon is among a group of advocates calling on the White House to exempt critical baby products from sky-high tariffs. In addition to levies on Chinese products, a baseline 10% tariff applies to all U.S. imports. Additional country-based duties — with the exception of China — are currently on hold for 90 days. "Manufacturers are, on a day-to-day basis, dealing with the shock of tariffs on products and are very willing to invest in supply chains," Gordon told CBS MoneyWatch. "They are looking at what it takes to onshore products, but it takes time and investment." Gordon added that she believes the tariffs amount to a "baby tax on every parent across the country." That's why she said a reprieve is necessary. "We know the administration wants to support families to feel like they can have babies, and this is the easiest and quickest way they can do that," she said. Inventory sitting on U.S. store shelves already costs more than it did last month. For example, UPPAbaby, which makes car seats and strollers overseas, said in a statement posted on its website in an April that tariffs are making price increases "unavoidable." Price hikes on some products went into effect May 5. An UPPAbaby car seat, for example, already costs $150 more than it did last month, according to Elizabeth Mahon, who owns Three Littles, a children's store in Washington, D.C. One of her most popular items, the UPPAbaby Vista stroller, now costs $1,199, up $300 from $899, she told CBS News correspondent Jo Ling Kent in May. "There aren't very many products that are made exclusively in the United States, and even products that are made in the United States rely on global manufacturing for production, or for their materials that they're packing things in or shipping materials," Mahon said. Resale proves popular The rising cost of parenthood has some parents turning to resale platforms, boosting demand for discounted open-box goods or overstock inventory. Shraysi Tandon, founder and CEO of Kidsy, a re-commerce platform for baby and kids products, told CBS MoneyWatch that "tariffs are wreaking havoc on families that were already squeezed to begin with." Tandon said she's witnessed a 25%-35% across-the-board hike in prices on baby equipment, including strollers, car seats, bouncers, carriers and other gear. "Price hikes we thought would happen over the summer are already happening in real-time," she said, adding that the increase in costs doesn't jibe with the White House's call for families to have more children. "If anything, people will get sticker shock and not want to have more kids at a time when many families are already experiencing inflationary pressures at checkout," she said. Kidsy has seen a 70% spike in traffic over the past couple weeks, according to Tandon, as parents look for ways to save money. "Resale and re-commerce is a strong signal to me that consumers are actively looking for discounted items, and ways in which they can save money on products that are essentials," she said. Mr. Trump this week said he's considering a carveout for baby products, but that he'd prefer for tariffs to be "nice and simple." "I'm not looking to have so many exemptions that nobody knows what's going on," Mr. Trump said during the swearing-in ceremony for David Purdue as Ambassador to China. In the meantime, expecting couples are taking a close look at their budgets and trying to find ways to trim costs. "I feel like we're trying to cut back a little bit on everything just because it's not clear how long this is going to last," expecting father Femi Taiwo told CBS News.
Yahoo
09-05-2025
- Business
- Yahoo
U.S. tariffs could raise cost of baby products up to $1,000 a year
President Trump's tariffs are making it a lot more expensive to have kids, parents and baby gear makers say. Sweeping levies imposed by Mr. Trump in April are hiking the prices of baby essentials, including car seats and strollers, amounting to a tax on parents, advocates for reducing costs for families say. At the same time, the White House is trying to encourage Americans to have more children. Mr. Trump is even considering a $5,000 "baby bonus," according to a New York Times report, to boost the U.S.' declining birth rate. New parents and couples that are expecting could soon face tariff-related cost increases of up to $1,000 a year on baby essentials, according to Natalie Gordon, the CEO of Babylist, a baby registry service. Gordon noted that price increases are already in effect across a range of products, given manufacturers' reliance on China to produce strollers, cribs, car seats and other required goods. Currently, an import duty of up to 145% applies to U.S. imports from China, where the vast majority of strollers sold in the U.S. are made. Mr. Trump on Friday signaled that the rate could come down, writing in a post on his social media platform Truth Social that an "80% Tariff on China seems right!" Calling for a reprieve Gordon is among a group of advocates calling on the White House to exempt critical baby products from sky-high tariffs. In addition to levies on Chinese products, a baseline 10% tariff applies to all U.S. imports. Additional country-based duties — with the exception of China — are currently on hold for 90 days. "Manufacturers are, on a day-to-day basis, dealing with the shock of tariffs on products and are very willing to invest in supply chains," Gordon told CBS MoneyWatch. "They are looking at what it takes to onshore products, but it takes time and investment." Gordon added that she believes the tariffs amount to a "baby tax on every parent across the country." Trump says trade policies may mean children have fewer toys that cost moreCould a $5,000 "baby bonus" convince Americans to have more kids? Here's what the data shows. That's why she said a reprieve is necessary. "We know the administration wants to support families to feel like they can have babies, and this is the easiest and quickest way they can do that," she said. Inventory sitting on U.S. store shelves already costs more than it did last month. For example, UPPAbaby, which makes car seats and strollers overseas, said in a statement posted on its website in an April that tariffs are making price increases "unavoidable." Price hikes on some products went into effect May 5. An UPPAbaby car seat, for example, already costs $150 more than it did last month, according to Elizabeth Mahon, who owns Three Littles, a children's store in Washington, D.C. One of her most popular items, the UPPAbaby Vista stroller, now costs $1,199, up $300 from $899, she told CBS News correspondent Jo Ling Kent in May. "There aren't very many products that are made exclusively in the United States, and even products that are made in the United States rely on global manufacturing for production, or for their materials that they're packing things in or shipping materials," Mahon said. Resale proves popular The rising cost of parenthood has some parents turning to resale platforms, boosting demand for discounted open-box goods or overstock inventory. Shraysi Tandon, founder and CEO of Kidsy, a re-commerce platform for baby and kids products, told CBS MoneyWatch that "tariffs are wreaking havoc on families that were already squeezed to begin with." Tandon said she's witnessed a 25%-35% across-the-board hike in prices on baby equipment, including strollers, car seats, bouncers, carriers and other gear. "Price hikes we thought would happen over the summer are already happening in real-time," she said, adding that the increase in costs doesn't jibe with the White House's call for families to have more children. "If anything, people will get sticker shock and not want to have more kids at a time when many families are already experiencing inflationary pressures at checkout," she said. Kidsy has seen a 70% spike in traffic over the past couple weeks, according to Tandon, as parents look for ways to save money. "Resale and re-commerce is a strong signal to me that consumers are actively looking for discounted items, and ways in which they can save money on products that are essentials," she said. Mr. Trump this week said he's considering a carveout for baby products, but that he'd prefer for tariffs to be "nice and simple." "I'm not looking to have so many exemptions that nobody knows what's going on," Mr. Trump said during the swearing-in ceremony for David Purdue as Ambassador to China. In the meantime, expecting couples are taking a close look at their budgets and trying to find ways to trim costs. "I feel like we're trying to cut back a little bit on everything just because it's not clear how long this is going to last," expecting father Femi Taiwo told CBS News. Did the conclave pick a front-runner to be new pope? World awaits new pope after conclave's vote Trump touts UK trade deal, but U.S. companies fear they won't survive China tariffs
