Track how companies discuss tariffs and trade policies in their earnings calls, and understand their impact across different industries and regions.
We have done, in my estimation, an excellent job of working cross-functionally relative to looking for diversification. I mean, right now, roughly 60% of the goods we source are coming out of the US.
Addressing these challenges has required close coordination between our merchandising, supply chain, stores and finance teams.
We incurred $27 million of tariff-related charges during the second quarter. Based on tariff rates as of August 11, we now expect a full year impact of approximately $100 million to cost of sales.
We estimate the new tariff rates will increase our tariff exposure by approximately $75 million annually.
Over 50% of our products are sourced domestically and wouldn't be subject to any tariffs.
As a result, tariffs are now expected to be approximately $185 million for fiscal 2026.
We are very confident that our fundamental business momentum, diverse global footprint, clean balance sheet and strong brand portfolio with pricing power will give us significant flexibility to manage through a variety of tariff scenarios.
we continue to believe that we differentiate ourselves in the industry by being the only pure-play cybersecurity firm to assemble all of our hardware in the U.S.A. at scale.
the dynamic macroeconomic and policy environment, including trade and tariffs, has wide-ranging implications for the semiconductor industry, increasing uncertainty and lowering visibility in the near term.
Tariff costs in the quarter were approximately $200 million, which brings us to roughly $300 million in tariff expense year-to-date.