Crocs to lose $5 million thanks to trade war with ChinaChristian Fernsby ▼ |
America "We estimate the 2019 impact at approximately $5 million"
Crocs provided details about the potential impact of proposed footwear tariffs on product imported into the United States from China.
"We do not anticipate that the tariffs, if put into effect, will have a material adverse impact on our business for the following reasons:
"Crocs has a globally diversified sourcing base.
"We currently import approximately 30% of our U.S. product from China. Assuming a 25% tariff takes effect on August 1, 2019, we estimate the 2019 impact at approximately $5 million.
"Our current sourcing mix reflects our need to balance ramping up incremental supply to meet the growing demand for our product and continuing our multi-year effort to reduce our sourcing from China.
"We are evaluating various mitigation initiatives which will be implemented to lessen the impact on Crocs of any tariffs ultimately put into effect." ■
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