Track how companies discuss tariffs and trade policies in their earnings calls, and understand their impact across different industries and regions.
We are not factoring in a meaningful rebound in consumer demand, which we believe is a prudent approach given the current macroeconomic environment and ongoing uncertainty surrounding tariffs and their potential impact on customers and end consumers.
In aggregate, the total expected impact on profitability this year from tariffs is $160 million, representing approximately 230 basis points of margin headwind.
we source the majority of our inventory from domestic suppliers and therefore do not expect a material impact from tariff increases.
Our total gross margin included a small impact from tariffs, which was slightly favorable compared to our estimate that was included in our guidance.
we continue to expect segment profit of at least $140 million, which continues to assume a net $50 million to $75 million headwind to our results in fiscal '26 from tariffs.
We are focused on what we can control and continue to build our company towards our vision to be the most premium global sportswear brand.
we're reducing the estimated tariff impact for 2025.
Despite shifting trade policy and a lot of macro headlines, our docks remained effectively full, and we are seeing continued strength in cargo loadings.
During the second quarter of 2025, the impact of tariffs on our operating results was immaterial.
We identified a small number of customers that identify tariffs as a reason for the sequential change in their revenue.