Kate Gulliver, Wayfair CFO, joins 'Squawk Box' to discuss the company's quarterly earnings results, impact of tariffs, state of the consumer, and more. ...

Group 1 - Wayfair reported a 218% increase in earnings to 70 cents per share adjusted, significantly surpassing forecasts of 44 cents per share adjusted [1] - Revenue for Wayfair increased by 8.1% to $3.12 billion [1] - The company did not indicate any major impacts from tariffs on its results [1] Group 2 - President Donald Trump announced new tariffs affecting three major industries, with duties ranging from 25% to 100% [2]

Core Insights - The 2025 CFO Priorities Annual Survey indicates that tariffs and trade barriers have become a significant concern for CFOs, with 66% anticipating negative impacts on their organizations, a notable shift from previous years [1][5][6] - Profitability remains the top priority for CFOs at 34%, followed closely by cybersecurity and economic uncertainty, both at 27% [5][6] - The survey highlights a decisive shift in CFOs' focus towards technology adoption, particularly AI and cybersecurity, as they seek to enhance operational efficiency and resilience [3][6] Profitability and Strategic Priorities - Profitability is the primary concern for CFOs, holding steady at 34%, while cybersecurity and economic uncertainty are tied at 27% [5] - On board agendas, profitability dominates at 63%, with technology transformation at 38% and competitive advantage at 37%, indicating a shift from previous focuses on digitalization and staff retention [5] - Two-thirds of CFOs expect negative impacts from tariffs, a significant increase from the previous year's focus on inflation [5] Tariffs Create New Complexity - Only 29% of CFOs report having the necessary skills and processes to comply with new tariff regulations, while 43% are still developing internal solutions [5] - The rising complexity due to tariffs is reshaping financial strategies and priorities among CFOs [6] Headcount Growth Returns - Nearly half of CFOs (45%) plan to increase finance headcount in the next quarter, marking a 19% rise from 2024, with 65% expecting growth over the next 12-24 months [5] - The expanding role of finance and increased focus on risk management are driving this hiring momentum [5] AI Acceleration and the Shift to Execution - AI has transitioned from exploration to execution, with 96% of organizations now engaging with AI, and 42% using it operationally [5] - There is a significant increase in the number of CFOs seeking external support for AI implementation, rising from 17% in 2024 to 59% [5] Cybersecurity: Rising Engagement Amid Growing Threats - Nearly three-quarters of CFOs (73%) are now involved in cyber strategy, with half deeply engaged in both strategy and response [12] - Confidence in cyber prevention and mitigation has declined to 43%, reflecting a shift in focus from prevention to response readiness due to unpredictable cyber threats [12]

Company Overview - Carter's is undergoing a transformation under new CEO Douglas Palladini, focusing on profitability and growth [3][4] - The company has seen strong consumer response to new products, particularly among young Gen Z families [4] Financial Performance - In Q3, net sales were approximately $758 million, with U.S. retail sales increasing by 2.6% and international sales rising by 4.9% [5] - However, Q2 profits dropped nearly 60%, leading the company to withdraw its annual guidance [4] - Net income for Q3 fell 80% year-on-year to $11.6 million, and operating income decreased over 60% to $29 million [8] Impact of Tariffs - Tariffs have significantly affected the company's profitability, with operating margin contracting to 3.8% from 10.2% a year ago [6] - Gross margin decreased by 180 basis points to 45.1%, with tariffs costing the company $20 million [6] - Tariffs have also negatively impacted wholesale profitability [7] Strategic Changes - Carter's plans to lay off about 300 corporate employees, representing 15% of its workforce, to achieve annualized savings of approximately $35 million starting next year [8] - The company intends to close about 150 North American stores over the next three years, increasing the number of closures from previous plans [8] Challenges in Sales Channels - Sales on Amazon have declined due to changes in the e-commerce giant's sales approach regarding Carter's "Simple Joys" brand [7] - Department store sales also experienced a decline during the period [7]

2-2Missed on Tariffs 4+ Times NO && Midnight Hammer YESHit on War 15+ Times YES && Biden 5+ Times NOWe got FOMC tomorrow, CANNOT WAIT!Easy (@EasyEatsBodega):🚨MENTION MARKET PLAYS🚨Trump is speaking to US Troops in Japan at 2:45AM EST.Got a few plays I like for this, and some brief thoughts below.War 15+ Times | YES❧ is speaking to the troops, so more likely to say this. Averages 9.5 mentions per speech, with an INCREASE https://t.co/b6f29Nnbno ...

Core Insights - Whirlpool reported better-than-expected financial results, with revenue of $4.03 billion surpassing Wall Street's forecast of $3.93 billion and adjusted earnings per share at $2.09 compared to estimates of $1.40 [1] Financial Performance - Revenue for the quarter was $4.03 billion, exceeding expectations [1] - Adjusted earnings per share were $2.09, significantly higher than the anticipated $1.40 [1] - For the full year, Whirlpool reiterated net sales of approximately $15.8 billion, with adjusted earnings per share now expected to be around $7.00, up from a previous range of $6 to $8 [4] Product Performance - Major domestic appliances in North America saw a 2.8% increase, driven by a refresh of 30% of the product portfolio [2] - Small domestic appliances globally experienced a 10.5% growth, largely due to the KitchenAid business, which reported double-digit revenue growth [2] Market Outlook - The company anticipates that new products will gain traction in the fourth quarter and into the next year as they increase their presence in retail [3] - Whirlpool is positioned well to capture growth as consumers return to the housing market [3] Regional Performance - A decline of 7.2% in major domestic appliances was noted in Asia, attributed to cooler weather and currency volatility in Argentina, which also affected Latin America with a 5.2% decline [4] External Factors - Tariffs impacted margins by 250 basis points in the third quarter, despite over 80% of US sales being produced domestically [5] - The company is seeking clarity on trade issues, particularly in light of an upcoming summit between US and Chinese leaders [6] - The fourth quarter is expected to be highly promotional as Whirlpool competes with companies facing excess inventory ahead of tariffs [6]

Core Insights - The stock market under President Trump's influence has become highly volatile, reacting sharply to policy announcements and social media posts [1][7][14] - Recent trade agreements with Southeast Asian nations and a tentative deal with China have led to significant market gains, despite concerns over one-sided benefits [2][4][5][12] Trade Agreements - President Trump's Asia tour resulted in trade frameworks with Malaysia, Cambodia, Thailand, and Vietnam, aimed at reducing tariffs on U.S. goods and securing investments, with Malaysia committing $150 billion to U.S. sectors [2][3] - The agreements appear to favor the U.S., as Southeast Asian countries do not receive equivalent reductions in tariffs for their exports to the U.S., leading to a decline in Malaysia's stock market [3] Market Reactions - Following the announcement of a tentative trade agreement with China, the Dow Jones Industrial Average opened above 47,530.09 and closed up 0.69%, while the S&P 500 reached an all-time high of 6861.62, closing up 1.22% [5] - The tech sector experienced notable gains, with Qualcomm rising 11% to 13% and Nvidia increasing between 2% and 3.6%, reflecting investor optimism amid reduced trade tensions [6] Canadian Trade Relations - President Trump announced a 10% tariff on Canada due to an advertisement featuring Ronald Reagan, which he deemed "fraudulent," leading to the termination of trade talks with Canada [8][9] - Analysts suggest this impulsive tariff could cost American consumers $50 billion, highlighting the unpredictable nature of trade policy under the current administration [10] Market Sentiment - Investor sentiment is characterized by a mix of acceptance and caution, with many adapting to Trump's negotiating style and the volatility it brings [11] - Despite recent market highs, underlying uncertainties persist, with a significant percentage of businesses postponing investments due to tariff-related uncertainties [12] Social Media Influence - President Trump's posts on Truth Social have been shown to impact market sentiment, with his reassurances leading to temporary market recoveries [7][13] - The stock of Trump Media & Technology Group Corp. remains volatile, reflecting the unpredictable nature of sentiment-driven investing [13]

Economic Policies and Trade - Discussion on Trump's tariff policies and their negative impact on the market, referencing a historical market crash in 1929 due to tariffs [2] - Debate on whether Trump is a free trader, with arguments suggesting he uses tariffs strategically for better trade deals [3][7] - Ronald Reagan's approach to trade is highlighted, noting that he was fundamentally a free trader but also utilized tariffs strategically [5][9] Market Performance and Economic Outlook - Current U.S. economy and stock market performance is described as booming compared to stagnant economies in Europe, Japan, and a recession in China, attributed to deregulation, lower taxes, and energy policies [10][11] - The potential for Argentina's new leadership under Malay to stabilize the economy through currency reforms and spending cuts is discussed [12][14] Taxation and Wealth Distribution - Criticism of New York City's political climate, particularly targeting billionaires as the source of economic problems, with a counterargument emphasizing the importance of wealthy individuals in job creation [20][21] - Florida's tax policies are highlighted, noting that the absence of an income tax has led to significant income inflow from other states, totaling $1 trillion [22][23]

Group 1: US-China Trade Relations - The upcoming meeting between President Trump and President Xi Jinping is generating optimism in the markets, with expectations of a substantial framework for a deal [1][2] - Key provisions being discussed include the removal of potential tariff increases, which would have seen a 100% increase in tariffs scheduled for the weekend [2] - There is an expectation of a delay on China's export controls on rare earth minerals, which had previously escalated tensions [3][20] - Substantial Chinese purchases of American soybeans are anticipated, which would significantly benefit US farmers currently selling zero soybeans to China [3][4][14] - The deal regarding the spin-off of TikTok is reportedly finalized, pending approval from both leaders [4][5] - Chinese confirmation of these provisions is still awaited, with state media indicating a basic consensus but lacking specific details [5][6] Group 2: US-Canada Trade Relations - Tensions are rising between the US and Canada, highlighted by Trump's announcement of an additional 10% tariff on Canada, which adds to the existing 35% tariffs [9][10] - The imposition of tariffs is linked to a negative advertisement that criticized Trump's tariff policies, indicating a deterioration in trade relations [8][22] Group 3: US-Mexico Trade Relations - In contrast to Canada, trade relations with Mexico appear more stable, with a tariff deadline that could have increased tariffs now off the table, allowing for continued negotiations [11][12]

Trade Negotiations & Agreements - Optimism surrounding the Trump-Xi meeting fuels markets, with potential for a substantial framework agreement [1] - A key market-friendly provision involves halting potential tariff increases, specifically a 100% tariff increase scheduled for the weekend [2] - Expectation of a delay in China's export controls on rare earth minerals, a move initiated earlier in the month [3] - Potential for substantial Chinese purchases of American soybeans, a significant development for US farmers currently selling zero soybeans to China [3][4] - Finalization of a deal to spin off TikTok is anticipated, pending final approval from Presidents Trump and Xi [4][5] - China confirms progress in talks but uses less enthusiastic language, stating a "basic consensus" on arrangements without providing details [6] US-Canada Trade Relations - Trade relations between the US and Canada are strained due to disagreements over tariffs and an ad criticizing Trump's tariff policies [8][9] - Trump announced an additional 10% tariff on Canada, on top of the existing 35% tariffs [9] - Existing trade talks between Trump and Canada are frozen [10] US-Mexico Trade Relations - A tariff deadline that could have increased tariffs on Mexico has been postponed, allowing for continued talks [11] - Trump's rhetorical focus is more aimed at Canada than Mexico [12] Soybean Trade - China has not fully met its Phase One agreement commitments, creating an opportunity for increased soybean purchases from the US [17] - Increased soybean purchases by China could alleviate pressure on President Trump to reach a domestic deal with Democrats regarding funding for a bailout package [18] Rare Earth Minerals - China may delay aggressive restrictions and licensing requirements on rare earth minerals, potentially for a year [20] - Beijing is negotiating with the European Union to ensure the supply of magnets, chemicals, and rare earths, countering the impact of the US-China trade war [20] Presidential Tariff Authority - The Supreme Court is considering a case regarding the president's authority to unilaterally impose tariffs [21][22] - Lower courts previously ruled against the president's authority to impose tariffs, with a decision from the Supreme Court expected potentially by mid-December [23] - Approximately $4 trillion is at stake in the Supreme Court case regarding presidential tariff authority [24] Government Shutdown - There is no progress in resolving the government shutdown [24] - The House Republican Conference will be absent, and President Trump will not sign a bill to reopen the government while in Asia [25]