In the last trade war, Kids2 redesigned an infant chair so it could be converted into a rocker by adding a moving part. Design tweaks like that are almost magical: They made a 25% tariff disappear, because children's chairs from China carried the tax, while rockers didn't and still don't.
CFO Anthony DiSilvestro reminded investors earlier this month that by next year, the El Segundo, California-based toy giant will get less than 40% of its goods from China-compared to the industry average of over 80%.
We have teams of people engaged today in analyzing and planning for different tariff scenarios. And obviously, our actions will depend upon what actually happens, which seems to change from day to day and week to week.
Jay Foreman, CEO of Basic Fun, said, 'You can get yourself in trouble bringing in the wrong product too early-it uses up cash flow and fills warehouses.'
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