U.S. tariffs deal heavy blow to consumer goods companies, causing Coach to plummet 30% in a single day, hitting a 14-year low.

The impact of the US tariff policy on local consumer retail companies continues to escalate, with many companies warning that tariffs will seriously damage their profitability. The latest performance report from shoe manufacturer Calochilus shows that it is expected to see a year-on-year decline in revenue in the third quarter, far below analysts' expectations of a slight increase, primarily due to a decrease in non-essential spending by US consumers and a decrease in foot traffic. The company disclosed that it expects additional costs from tariffs to reach $40 million in the second half of the year, potentially rising to $90 million for the full year. As a result, its stock price plummeted nearly 30% on the 7th, marking the largest single-day decline in 14 years. Giants such as Nike and GAP are also under pressure. In June, Nike stated that tariffs would add $1 billion to its costs, while GAP expects to incur an additional $250 to $300 million. Deckers, the seller of UGG boots, saw its US market sales growth drop from 11% to 2.8% due to tariff pressure on shoes produced in Vietnam, causing its stock price to fall by 20% at one point. Multinational brands have not been spared either. Puma suffered a single-day decline of 18.4% on July 25th, mainly due to a downward revision of its fiscal year 2025 guidance to a loss, with tariffs expected to result in a 80 million gross margin loss. While Adidas reported double-digit profit growth in the first half of the year, it warned that tariffs could bring an additional 200 million in costs. Companies have adopted different strategies to address the situation: Deckers chose to partially absorb the costs to temporarily postpone price hikes, but this has squeezed their profit margins; Nike, Adidas, and Fast Retailing, the parent company of Uniqlo, have explicitly stated plans to raise prices. Fast Retailing mentioned that prices for fall and winter season items will be forced to increase due to tariffs, stating that they have "no other choice". Industry experts point out that both passing on tariff costs to consumers or absorbing them internally present challenges raising prices may suppress demand, while internal absorption will directly erode profits. Currently, concerns about the profitability outlook for the consumer goods industry have intensified, leading to significant fluctuations in the stock prices of related companies.