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Williams-Sonoma CEO: Tariffs' full effect hits next quarter
20 Nov
Summary
- Tariffs will impact Q4 more than Q3 as costs roll through.
- Company works to mitigate losses by renegotiating deals.
- Williams-Sonoma aims to boost domestic manufacturing efforts.
Williams-Sonoma's CEO, Laura Alber, recently provided an update on the company's business operations, specifically addressing the impact of ongoing tariffs. She indicated that the full effect of these tariffs will be more pronounced in the fourth quarter than in the third quarter, as the costs associated with the new duties are progressively impacting the company's financials.
Alber explained that while there is no complete immunity to tariffs, Williams-Sonoma is implementing several measures to mitigate potential losses. These efforts include renegotiating terms with suppliers, diversifying the company's supply chain to reduce dependence on countries like China, and actively promoting domestic manufacturing. The company highlighted that a significant portion of its upholstered furniture is already produced within the United States.
Furthermore, the company is strategically adjusting its pricing and promotional activities. Williams-Sonoma is carefully increasing prices in areas where it believes its products are underpriced and is committed to reducing promotional sales to enhance regular price selling. Alber views the tariff situation as a short-term challenge, expecting stability by the end of the year.
