Why Williams-Sonoma Stock Was Wilting This Week
According to data compiled by S&P Global Market Intelligence, Williams-Sonoma (NYSE: WSM) shares were weakening considerably -- as of early morning Friday they were down nearly 13% week to date. As pointed out by an analyst tracking the company, it's very exposed to the risk posed by the tariffs freshly enacted by the U.S. government.
Williams-Sonoma is a storied home furnishings and kitchen goods retailer that, like many of its peers, relies significantly on imports for its product line-up. In an analysis published on Thursday (the day after the tariffs were formally announced), KeyBanc analyst Bradley Thomas flagged those sectors as being among the most vulnerable in a trade dispute.
According to reports, Thomas wrote that it was difficult to find any positive factors in the levies for retailers such as Williams-Sonoma. Although some of the tariffs are sure to be negotiated down, they will doubtlessly increase consumer inflation, which in turn will negatively affect the retail sector in general.
Source Fool.com
