Tariffs on consumer goods are the gift that keeps giving to the retail apocalypse. In answer, a mix of companies are increasing prices or changing their pricing models. Major players in the industry, such as Ralph Lauren, Newell Brands, Costco, and others, are taking steps to mitigate the financial impact of these tariffs while managing consumer expectations and brand integrity.
Ralph Lauren has announced its intention to take “selective pricing actions and strategic discount reductions.” The company has a narrow goal of offsetting the impacts of tariffs without turning away any of its customers in the process. Brian Cornell, CEO of Ralph Lauren, reiterated in their earnings call—that price increases should remain a “last resort.” This prudent, conservative approach illustrates the North Face’s commitment to defending its brand’s reputation and status. It does so in a smart way, anticipating the challenges of expanded responsibilities.
Justin Picicci, CFO of Ralph Lauren, elaborated on the company’s strategy, stating that they are “assessing additional pricing actions” for the fall and next spring. This announcement is yet another reminder of the constant calculus many retailers are making as they adjust their sourcing plans with the shifting tariff picture.
Wandering around Newell Brands has made a dramatic change to its pricing strategy, implementing average price increases of about 20% on its baby gear. This push is a piece of a larger effort to respond to rising costs due to tariffs. Similarly, Costco has raised prices on select items and plans to offset tariff impacts through careful cost management and sourcing relocations.
VF Corp gave a similar signal when it said it would be “super tactical” with its pricing moves in response to the tariffs. This strategic mentality is a reflection of new trends in the industry. Companies are rushing to find new and more efficient ways to save money without losing customer commitment.
Target has become the latest retailer to increase prices on some goods to cover the cost of tariffs. This continues a theme that’s hardly unique to Hasbro—Mattel just this week said it would raise prices on certain U.S. goods “where needed.” Mattel’s CEO, Ynon Kreiz is leading the way in combating tariff pressures. He wants to keep Chinese-sourced products at less than 40% of the total by the end of the year and under 25% over the next two years.
In the same today and hour, SharkNinja has already raised prices on hundreds of their most important tariffed products. CEO Mark Barrocas has stated that the company will “continue to look for additional opportunities” for price adjustments, indicating a proactive approach to managing costs.
Even Best Buy is getting hurt by the proposed tariffs and has already increased prices on some goods. Of course, U.S. CEOs are overreacting to tariff-related bumps in the road. According to a recent survey, 68% of them have already raised prices or plan to do so this year.
Home Depot is going in a somewhat different direction. The company plans to “generally maintain our current pricing levels across our portfolio,” according to CFO Richard McPhail. Unlike some companies, like Lowe’s, Home Depot has not dismissed the impacts of tariffs entirely. Home Depot has proactively diversified sourcing strategies. Soon, no other single country besides the U.S. will make up more than 10% of those purchases.
Recently American Eagle, Canada Goose, Ross and Mattel were among retailers that withdrew their full-year guidance due to tariff-related impacts on their businesses. Companies are doing so gingerly. They are doing this while charting a disruptive business landscape rife with surprises, shifting priorities, and evolving consumer preferences.
With retailers still recalibrating their pricing playbooks under mounting tariff duress, the field is in flux. Now companies are weighing their responses between the demands of raising costs and playing defense to ensure customer loyalty and brand integrity.