Williams-Sonoma (Wsm) said that he had experienced minimum prices impacts in its second trimester results, but expects the prices to put pressure on growth and operating margins in the current quarter.
“Our additional rate rate has doubled since our last profit call,” said financial director Jeffrey Howie when the company’s profits are called. “During our May call for May, our additional rate rate was 14%. Since today’s call, it has doubled at 28%.
The furniture company, which houses brands such as West Elm and Pottery Barn, said a better than expected profit of $ 2.00 per share. Wall Street expected $ 1.80.
The Williams-Sonoma action fell 1.4% in the early afternoon. The stock sank earlier this week, with others furniture stocksAfter President Trump published on social networks that his administration would open up an investigation into furniture imports and impose additional prices in the sector.
“It is early to speculate – I think we are day 5 of a 50 -day survey, there is not much information on this subject,” said Laura Alber, CEO of Williams -Sonoma, about possible furniture rates. “But I will say that it will be very difficult for the industry, even if prices are set up to bring a huge quantity to the United States in a short time, because there are not the factories available to do a lot of production.”
“For us, of course, we will be in a much better position than most if it should happen due to our strong American manufacturing capacities,” said Alber. “We have … (a) a good part of our padding in the United States while we are talking about, and we can do more, and that would be something that we really pushed.”
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