Stephen Madden executives said Thursday that the shoe maker is working quickly to shift product sourcing from China to other countries in the wake of Donald Trump's presidential election victory.
President Trump said in February that if he takes office, he would reimpose tariffs on China that could exceed 60% and place a huge burden on retail companies that rely heavily on imports from the region. .
Executives Stephen Madden said on a post-earnings conference call that the company is already working on potential scenarios that could lead to a faster flow of goods out of China, and is considering opening factories in other countries such as Cambodia, Vietnam, Mexico and Brazil. He said it is being developed.
“If President Trump decides to impose tariffs when he takes office in January, just under half of our current business could be subject to tariffs on imports from China,” a company executive said.
“Our goal over the next year is to reduce the percentage of goods we source from China by about 40% to 45%,” the executive added.
Stephen Madden stock rose 3.1% to $45.60 on Thursday.
