Jamie Spencer
As U.S. President Donald Trump’s most recent tariffs loom, several well-known international brands, including Pandora, Puma, and Hugo Boss, are reevaluating their pricing strategies and supply chains. These brands, alongside major players like Mattel, UPS, and Ford, have all expressed concern over the potential impact of the proposed duties on imports.
Pandora: Price Increases and Potential Revenue Impact
Pandora, the Danish jewelry brand famous for its charm bracelets, is facing significant challenges. As a company that derives roughly a third of its sales from the U.S., Pandora relies heavily on Asian manufacturing, particularly in Thailand, Vietnam, India, and China. CEO Alexander Lacik warned that if tariffs on imports from these regions remain, the jewelry industry, particularly in the affordable sector, could see a surge in prices. Pandora is currently modeling various scenarios for price hikes but expects the final cost increases to be industry-wide.
Puma: Navigating Tariff Challenges with Cost Optimization
Puma, the German sportswear giant, is also considering price adjustments due to the tariffs. Chief Financial Officer Markus Neubrand emphasized that the company is actively evaluating cost optimization strategies for the U.S. market, with a focus on mitigating the impact of tariff increases. However, Puma does not want to lead the pricing changes and expects larger U.S.-focused brands to set the pace for price hikes.
Hugo Boss: Tariff Adjustments and Supply Chain Shifts
Fashion retailer Hugo Boss is planning price increases as part of a broader strategy to handle the extra costs imposed by the tariffs. The company is also adjusting its supply chain by shifting its product sourcing, replacing U.S.-bound products from China with goods from other regions. Despite a drop in sales during the first quarter, CEO Daniel Grieder has acknowledged that it’s too early to assess the full impact of the tariffs, though U.S. shopper demand has shown signs of diminishing.
Zalando: Prepared for Market Fluctuations
Zalando, the online fashion retailer, has not yet seen a major impact from the tariffs, reporting stable consumer demand. However, the company is proactively preparing for any external changes in the market. Despite current stability, Zalando is positioning itself to adapt to shifting geopolitical and macroeconomic conditions. The company has maintained its full-year guidance while remaining cautious of potential disruptions from the tariff policies.
