Report: Five Below Suspends Shipments From China Due to Tariffs

Core Insights - Five Below has suspended cargo shipments from China due to the ongoing trade war between the U.S. and China, as reported by a shipping company used by the retailer [1] - The recent tariff increases announced by the U.S. could impose costs of 90% to 95% on Five Below, according to an estimate from Oppenheimer analyst Brian Nagel [2] - Approximately 60% of Five Below's total cost of goods are imported from China, either directly or through domestic vendors [3] Company Response - Five Below's CFO Kristy Chipman stated that the company is actively managing the impact of tariffs through various initiatives, including vendor collaboration, selective price adjustments, diversification of sourcing, and a focus on product newness [4] - The company is currently dealing with existing tariffs and has implemented mitigation strategies to address the financial impact [4] Industry Impact - Global container bookings have seen a significant drop of 49% during the period of April 1-8 compared to the previous week, indicating a broader reaction from global shippers to changes in tariffs [4] - The decline in bookings is particularly pronounced in discretionary or seasonal categories, reflecting the uncertainty in the market due to tariff changes [5] - Amazon has also canceled orders from multiple vendors in China and other Asian countries following the U.S. announcement of tariffs on goods from over 180 countries [6]