Latest news with #SkyCanaves
CTV News
22-05-2025
- Business
- CTV News
Ralph Lauren mulls price hikes as tariffs hurt sales forecast
A general view shows the New York Stock Exchange, Thursday, April 10, 2025, in New York. (AP Photo/Yuki Iwamura) Ralph Lauren forecast tepid annual sales on Thursday and said it was weighing price increases for its classic Polo shirts and spring dresses, as the apparel retailer grapples with volatile U.S. tariffs and consumer spending pressures. Its shares were marginally higher in early trade, as the company beat fourth-quarter estimates for revenue and profit, thanks in part to investments in brands including Polo and Purple Label, as well as increased marketing. The company expects fiscal 2026 revenue to increase in the low-single digits from last year, including the impact of tariffs, inflationary pressures and spending challenges. Analysts estimate a rise of 4.39%, per data compiled by LSEG. 'The outlook is far more modest. Weakening consumer sentiment and ongoing tensions from trade and geopolitical relations may dampen the appeal of iconic U.S. brands such as Ralph Lauren in overseas markets,' said Sky Canaves, analyst with eMarketer. Ralph Lauren is among the retailers and luxury brands facing the brunt of unpredictable U.S. tariff shifts that have disrupted businesses and rattled shoppers worldwide. In fiscal 2024, the company sourced about 96% of its products from outside the U.S., with 15% coming from China, according to its annual filings. China is also a major market for Ralph Lauren products, following North America and Europe. While the recent 90-day trade truce between Washington and Beijing cut U.S. tariffs on China to 30% from an eye-watering 145%, the relief is expected to be brief for the Asian country's export-reliant economy. Ralph Lauren posted fiscal 2025 gross margin of 68.6%, and forecast it would be flat for fiscal 2026 as higher prices, lower cotton costs, and better sales in key areas help offset steep tariffs and other material costs. Its revenue of $1.70 billion for the quarter ended March 29, beat estimates of $1.65 billion, while adjusted profit of $2.27 per share trumped estimates of $2. Anuja Bharat Mistry in Bengaluru; Editing by Devika Syamnath, Reuters
American Military News
03-05-2025
- Business
- American Military News
Amazon braces for tougher business climate amid Trump trade war
Inc. said it's bracing for a tougher business climate in the coming months, echoing concerns from a range of companies that tariffs and related economic turmoil could crimp consumer spending. When it reported results Thursday, the world's largest online retailer posted a decent first quarter but said operating profit in the current period would be weaker than Wall Street anticipated. Amazon projected operating profit of $13 billion to $17.5 billion, compared with an average estimate of $17.8 billion. Sales will be $159 billion to $164 billion in the period ending in June, the company said in a statement. Analysts, on average, expected $161.4 billion. In issuing its forecast, Amazon said results may be 'materially affected by many factors,' such as 'tariff and trade policies,' currency fluctuations and 'recessionary fears.' Amazon didn't mention tariffs in its first-quarter forecast in early February. 'Obviously, none of us knows exactly where tariffs will settle or when,' Chief Executive Officer Andy Jassy said on a conference call after the results were released. 'We haven't seen any attenuation of demand yet. To some extent, we've seen some heightened buying in certain categories that may indicate stocking up in advance of any potential tariff impact.' First-quarter sales increased 9% to $155.7 billion, compared with the average estimate of $155.2 billion. Operating income was $18.4 billion in the period ended March 31. Analysts projected $17.5 billion. The company's reputation for competitive prices and a broad base of suppliers could insulate it if shoppers become more deal-focused. But a pullback by the independent Chinese sellers who help stock Amazon's warehouses could hit the logistics and high-margin advertising businesses. There are already signs of a slowdown. Revenue from third-party seller services increased 6% to $36.5 billion in the first quarter, falling short of analysts' average estimate. Advertising, which has been the company's fastest-growing unit, gained 18% to $13.9 billion, in line with estimates. 'Amazon advertising remains vulnerable to cuts in spending from the many small and mid-sized sellers who will be most squeezed by tariffs on goods from China, and revenue growth from the third party marketplace has slowed significantly from the levels of just a few quarters ago,' said Sky Canaves, an analyst at Emarketer. The shares declined about 3% in extended trading after closing at $190.20 in New York. The shares have fallen about 13% this year as Wall Street weighed the impact of President Donald Trump's tariffs on a retail operation that sources much of its goods from China. Amazon Web Services, the largest seller of rented computing power, reported first-quarter sales gained 17% to $29.3 billion, in line with analysts' estimates. It was the unit's slowest growth in a year and contrasted with Microsoft Corp. Amazon's biggest cloud rival posted a blowout quarter this week, reporting stronger-than-expected sales and profit, suggesting customer demand for cloud services has held steady despite the wave of tariffs and economic turbulence. Gil Luria, an analyst with DA Davidson & Co., said Amazon investors 'may be a little disappointed by margins and margin guidance, which could create a concern about Amazon absorbing tariff costs. While AWS grew almost as expected, that comes on the tail of Microsoft Azure well exceeding expectations and growing that business almost twice as fast.' The White House lambasted Amazon earlier this week following a news report that the company was considering displaying the cost of tariffs to shoppers. Amazon said it was considering — and has no plans to implement — disclosing the cost of imports for Haul, its Temu-like storefront that features cheap goods shipped directly from Chinese sellers. Chief Financial Officer Brian Olsavsky said Amazon is planning for 'various outcomes' regarding trade and the overall economy. 'We've taken a number of actions to protect the customer experience,' Olsavsky said on the call. 'We're doing everything we can to keep prices low for customers, in a way that makes economic sense.' ___ © 2025 Bloomberg L.P. Distributed by Tribune Content Agency, LLC.
New York Times
03-05-2025
- Business
- New York Times
Trump's Tariff on Cheap Chinese Imports Will Cost Big Tech Billions
The expansion of the loophole for tariff-free shipments of goods nearly a decade ago gave rise to Temu, Shein and other low-cost online retailers offering items straight from Chinese factories at unfathomable discounts. It also unleashed something else — a cascade of billions of dollars of digital advertising that provided a windfall for Meta, Alphabet and other technology industry giants. Temu and Shein, jockeying for the attention of American shoppers, blanketed seemingly every inch of the internet with their ads. In the last two years, only Amazon spent more on online advertising in the United States than Shein or Temu. Now, the advertising bonanza might be coming to an end after the demise of the shipping loophole that spurred it. On Friday, President Trump eliminated the exemption that had allowed goods made in mainland China and Hong Kong valued at less than $800 to enter the United States without being subject to import taxes. For Temu and Shein, this means they are now subject to tariffs of as much as 145 percent to bring over Chinese goods. Last week, Temu started adding 'import charges' to certain products, which more than doubled the overall price to buy and ship the items. A Temu spokesperson said on Friday that the company had stopped shipping products from China directly to customers in the United States, and that its U.S. orders would now be shipped from local warehouses in America, as the business 'transitions to a local fulfillment model.' Shein did not immediately respond to an email requesting comment. The new tariffs are expected to deal a punishing blow to companies built on selling goods at rock-bottom prices and attracting customers through aggressive online advertising. Using the slogan 'Shop Like a Billionaire,' Temu bought advertising time during the Super Bowl. Temu's parent company, PDD Holdings, used a similar strategy for its Chinese e-commerce app, Pinduoduo, in China, spending lavishly on advertising to grow rapidly in a competitive market. Sky Canaves, a principal analyst for retail and e-commerce at the research firm eMarketer, said the ads from Temu and Shein were once 'inescapable' on search, social media and apps. But that is changing. 'They've already pulled back their advertising pretty heavily,' she said. Over a two-week period starting March 31, Temu spent 31 percent less on U.S. daily advertising on Facebook, Instagram, TikTok, Snap, X and YouTube than its average daily spending on those platforms in the previous 30 days, according to estimates from Sensor Tower, a market intelligence firm. Shein's daily advertising outlays on its social networks in the United States were down 19 percent over the same two weeks. Temu and Shein, which had flooded Google in the United States with ads for the goods they sell, started to disappear from the platform in April. On April 5, Temu accounted for 19 percent of all U.S. ads displayed on Google Shopping, but that figure dropped to zero a week later, according to research by Tinuiti, a marketing firm. Shein went from around 20 percent in early April to zero by April 16. Tinuiti identified the tariffs as the main factor behind the advertising pullback. It said the reduction in spending coincided with the raising of prices by both companies on certain products. Without the constant advertising presence, Temu's and Shein's apps have fallen off the charts of the 10 most downloaded mobile apps in the United States. Temu served about 30 million daily users in the United States, the company disclosed in a lawsuit filed against Shein in 2023. At Meta, which owns Facebook, Instagram and WhatsApp, some Asian retailers had already reduced their U.S. advertising spending in anticipation of the end of the so-called de minimis exemption, Susan Li, Meta's chief financial officer, said on a conference call with investors on Wednesday. Some of the spending has been redirected to Meta platforms in other markets, but the spending in April was down from a year earlier, she said. Ms. Li did not name any of the companies. Investors were closely watching what Meta said because advertisers from China, led by Temu and Shein, had been one of the company's fastest-growing segments. Last year, advertisers from China generated $18.4 billion in revenue for Meta, accounting for about 11 percent of its total and more than doubling in size since 2022. Snap, a social media firm, said that 'a subset of advertisers' had cut back on spending because of the changes to the shipping loophole. The company declined to provide a forecast for its current quarter, citing the uncertainty caused by the tariffs. Snap's shares fell 12 percent after the announcement. Last week, Philipp Schindler, Google's chief business officer, said changes to the tariff loophole 'will obviously cause a slight headwind to our ads business in 2025,' primarily from Asian e-commerce companies. He also did not identify specific companies.
Yahoo
02-05-2025
- Business
- Yahoo
Amazon Braces for Tougher Business Climate as US Tariffs Hit
(Bloomberg) -- Inc. said it's bracing for a tougher business climate in the coming months, echoing concerns from a range of companies that tariffs and related economic turmoil could crimp consumer spending. NJ Transit Urges Commuters to Work Remotely If Union Strikes NYC Lost $9 Billion of Income to Miami, Palm Beach in Five Years New York City Transit System Chips Away at Subway Fare Evasion NYC's MTA to Cut Costs Instead of Borrowing More to Fund Upgrades NYC's Congestion Toll Raised $159 Million in the First Quarter When it reported results Thursday, the world's largest online retailer posted a decent first quarter but said operating profit in the current period would be weaker than Wall Street anticipated. Amazon projected operating profit of $13 billion to $17.5 billion, compared with an average estimate of $17.8 billion. Sales will be $159 billion to $164 billion in the period ending in June, the company said in a statement. Analysts, on average, expected $161.4 billion. In issuing its forecast, Amazon said results may be 'materially affected by many factors,' such as 'tariff and trade policies,' currency fluctuations and 'recessionary fears.' Amazon didn't mention tariffs in its first-quarter forecast in early February. 'Obviously, none of us knows exactly where tariffs will settle or when,' Chief Executive Officer Andy Jassy said on a conference call after the results were released. 'We haven't seen any attenuation of demand yet. To some extent, we've seen some heightened buying in certain categories that may indicate stocking up in advance of any potential tariff impact.' First-quarter sales increased 9% to $155.7 billion, compared with the average estimate of $155.2 billion. Operating income was $18.4 billion in the period ended March 31. Analysts projected $17.5 billion. The company's reputation for competitive prices and a broad base of suppliers could insulate it if shoppers become more deal-focused. But a pullback by the independent Chinese sellers who help stock Amazon's warehouses could hit the logistics and high-margin advertising businesses. There are already signs of a slowdown. Revenue from third-party seller services increased 6% to $36.5 billion in the first quarter, falling short of analysts' average estimate. Advertising, which has been the company's fastest-growing unit, gained 18% to $13.9 billion, in line with estimates. 'Amazon advertising remains vulnerable to cuts in spending from the many small and mid-sized sellers who will be most squeezed by tariffs on goods from China, and revenue growth from the third party marketplace has slowed significantly from the levels of just a few quarters ago,' said Sky Canaves, an analyst at Emarketer. The shares declined about 2% in premarket trading on Friday after closing at $190.20 in New York. The shares have fallen about 13% this year as Wall Street weighed the impact of President Donald Trump's tariffs on a retail operation that sources much of its goods from China. Amazon Web Services, the largest seller of rented computing power, reported first-quarter sales gained 17% to $29.3 billion, in line with analysts' estimates. It was the unit's slowest growth in a year and contrasted with Microsoft Corp. Amazon's biggest cloud rival posted a blowout quarter this week, reporting stronger-than-expected sales and profit, suggesting customer demand for cloud services has held steady despite the wave of tariffs and economic turbulence. Gil Luria, an analyst with DA Davidson & Co., said Amazon investors 'may be a little disappointed by margins and margin guidance, which could create a concern about Amazon absorbing tariff costs. While AWS grew almost as expected, that comes on the tail of Microsoft Azure well exceeding expectations and growing that business almost twice as fast.' The White House lambasted Amazon earlier this week following a news report that the company was considering displaying the cost of tariffs to shoppers. Amazon said it was considering — and has no plans to implement — disclosing the cost of imports for Haul, its Temu-like storefront that features cheap goods shipped directly from Chinese sellers. Chief Financial Officer Brian Olsavsky said Amazon is planning for 'various outcomes' regarding trade and the overall economy. 'We've taken a number of actions to protect the customer experience,' Olsavsky said on the call. 'We're doing everything we can to keep prices low for customers, in a way that makes economic sense.' --With assistance from Spencer Soper. (Updates with premarket shares) Made-in-USA Wheelbarrows Promoted by Trump Are Now Made in China 100 Moments You Might Have Missed From Trump's First 100 Days As More Women Lift Weights, Gyms Might Never Be the Same Can the Labubu Doll Craze Survive Trump's Tariffs? Healthy Sodas Like Poppi, Olipop Are Drawing PepsiCo's and Coca-Cola's Attention ©2025 Bloomberg L.P. Sign in to access your portfolio
Miami Herald
02-05-2025
- Business
- Miami Herald
Amazon braces for tougher business climate amid Trump trade war
Inc. said it's bracing for a tougher business climate in the coming months, echoing concerns from a range of companies that tariffs and related economic turmoil could crimp consumer spending. When it reported results Thursday, the world's largest online retailer posted a decent first quarter but said operating profit in the current period would be weaker than Wall Street anticipated. Amazon projected operating profit of $13 billion to $17.5 billion, compared with an average estimate of $17.8 billion. Sales will be $159 billion to $164 billion in the period ending in June, the company said in a statement. Analysts, on average, expected $161.4 billion. In issuing its forecast, Amazon said results may be "materially affected by many factors," such as "tariff and trade policies," currency fluctuations and "recessionary fears." Amazon didn't mention tariffs in its first-quarter forecast in early February. "Obviously, none of us knows exactly where tariffs will settle or when," Chief Executive Officer Andy Jassy said on a conference call after the results were released. "We haven't seen any attenuation of demand yet. To some extent, we've seen some heightened buying in certain categories that may indicate stocking up in advance of any potential tariff impact." First-quarter sales increased 9% to $155.7 billion, compared with the average estimate of $155.2 billion. Operating income was $18.4 billion in the period ended March 31. Analysts projected $17.5 billion. The company's reputation for competitive prices and a broad base of suppliers could insulate it if shoppers become more deal-focused. But a pullback by the independent Chinese sellers who help stock Amazon's warehouses could hit the logistics and high-margin advertising businesses. There are already signs of a slowdown. Revenue from third-party seller services increased 6% to $36.5 billion in the first quarter, falling short of analysts' average estimate. Advertising, which has been the company's fastest-growing unit, gained 18% to $13.9 billion, in line with estimates. "Amazon advertising remains vulnerable to cuts in spending from the many small and mid-sized sellers who will be most squeezed by tariffs on goods from China, and revenue growth from the third party marketplace has slowed significantly from the levels of just a few quarters ago," said Sky Canaves, an analyst at Emarketer. The shares declined about 3% in extended trading after closing at $190.20 in New York. The shares have fallen about 13% this year as Wall Street weighed the impact of President Donald Trump's tariffs on a retail operation that sources much of its goods from China. Amazon Web Services, the largest seller of rented computing power, reported first-quarter sales gained 17% to $29.3 billion, in line with analysts' estimates. It was the unit's slowest growth in a year and contrasted with Microsoft Corp. Amazon's biggest cloud rival posted a blowout quarter this week, reporting stronger-than-expected sales and profit, suggesting customer demand for cloud services has held steady despite the wave of tariffs and economic turbulence. Gil Luria, an analyst with DA Davidson & Co., said Amazon investors "may be a little disappointed by margins and margin guidance, which could create a concern about Amazon absorbing tariff costs. While AWS grew almost as expected, that comes on the tail of Microsoft Azure well exceeding expectations and growing that business almost twice as fast." The White House lambasted Amazon earlier this week following a news report that the company was considering displaying the cost of tariffs to shoppers. Amazon said it was considering - and has no plans to implement - disclosing the cost of imports for Haul, its Temu-like storefront that features cheap goods shipped directly from Chinese sellers. Chief Financial Officer Brian Olsavsky said Amazon is planning for "various outcomes" regarding trade and the overall economy. "We've taken a number of actions to protect the customer experience," Olsavsky said on the call. "We're doing everything we can to keep prices low for customers, in a way that makes economic sense." (With assistance from Spencer Soper.) Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
