Track how companies discuss tariffs and trade policies in their earnings calls, and understand their impact across different industries and regions.
We expect gross margins to expand in the second quarter. Based on the information that we see today, our expectation is that operational efficiency gains and growth from more tenured specialties can offset potential headwinds from macroeconomic factors such as tariffs.
Based on our understanding of current tariff policies, our expectation is that there will be minimal direct impact to our business.
following the announcement of the April 2nd tariffs and subsequent geopolitical events, the market entered a new phase of volatility and uncertainty over the ultimate outcome and impact of tariff policies.
we expect a negligible portion of our client base to be meaningfully impacted by tariffs, which has already been incorporated into our updated credit assumptions.
Given our FOB Fabrinet shipping terms, tariffs are typically handled by customers, and so far we have not observed any meaningful changes in demand.
We expect the direct impact of tariffs on our business to be limited, but we are highly aware of potential indirect impacts.
Based on what we know now, our expectations of how certain details will resolve around tariffs, we've estimated the gross impact of tariffs for full year total company EBIT of $2.5 billion and a net impact of $1.5 billion.
A key topic that further developed during the quarter is tariffs and global trade uncertainty, which are having a significant impact on the toy industry.
Given how dynamic the situation is, just I have to limit my comments to what we know today. And so for tariffs that have been announced and are in effect, there is an immaterial impact to Vertex.
Given the maturity of the tariff rate, the impact -- unmitigated impact that we expect is a 12-month run rate of about $100 million.