Pier 1 comments on impact of tariffs

Pier 1 Imports Inc. (PIR) on Wednesday provided commentary regarding the proposed 10 percent tariff on additional classes of products imported to the U.S. from China announced by the Office of the U.S. Trade Representative on July 10, 2018.

The Fort Worth-based home furnishing retailer sources its products from multiple countries around the world, including China.

On Wedneday, U.S. President Donald Trump accused China of “vicious” tactics on trade, tweeting that China was specifically targeting U.S. farmers with retaliatory tariffs because “they know I love & respect” them.Consistent with recent years, approximately 59% of the Company‚Äôs fiscal 2019 net sales are expected to be derived from merchandise produced in China. Of that amount, approximately half is expected to consist of product classes subject to the proposed tariff.

Trump’s comments on China came after his administration announced a plan to provide $12 billion in emergency relief for farmers who have been slammed by the president’s trade disputes. China has retaliated to American tariffs with duties on some U.S. products.

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In a statement, Pier 1 officials said the company is evaluating strategies to mitigate the impact of the proposed tariff, including collaborative efforts with its vendor partners, and does not expect financial results in fiscal 2019 to be materially affected. There can be no assurance as to the final scope of the proposed tariff or the course or timing of trade negotiations between the United States and China to resolve the issues which led the Office of the U.S. Trade Representative to announce the proposed tariff.