1438 ET [Dow Jones]--The current tariffs scenario would be devastating to many hardline retailers if they are persistent, Wedbush analysts say in a research note. This mix would severely pressure earnings and points to unattractive risk/reward for most companies with high Asia sourcing exposure, limited pricing power and weak balance sheets. Some of these include Best Buy, Floor & Decor, Wayfair, Williams-Sonoma, Arhaus, RH, Dick's Sporting Goods and Academy Sports & Outdoors, the analysts say. However, there could also bring opportunities for hardline retailers if reciprocal tariffs are dialed back almost in their entirety, except for China and Europe, a scenario the analysts view as more likely. "We see trading opportunities to the upside in the most oversold names since 'Liberation Day' including RH, Wayfair, Floor & Decor and Arhaus." (sabela.ojea@wsj.com)
(END) Dow Jones Newswires
April 09, 2025 14:41 ET (18:41 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.