"The retail giant's chief executives said the de minimis loophole, which until now allowed small parcels under $800 to enter the US duty-free, would hit competitors like Shein. Trump is set to close the de minimis exemption for goods coming from all countries on Friday. Francis Conforti, Urban Outfitters' operating chief, said the exemption had "really immaterial impact" on the company and that he was not worried that its absence would impact the business."
"CEO Richard Hayne added that the closure of the loophole would "only help" Urban Outfitters. "Some of the folks who were big into this, Shein, and some others, are obviously having a little bit harder time coping with some of the new regulations," Hayne said to investors. "So to the degree that they're shipping less, it should help us." Urban Outfitters, a Philadelphia-based corporation, owns several retailers under its brand umbrella, such as Anthropologie, Free People, and Nuuly."
Urban Outfitters views the planned closure of the de minimis loophole as unlikely to hurt its business. The de minimis exemption previously allowed small parcels under $800 to enter the United States duty-free. The rule change is expected to reduce imports from low-cost overseas fast-fashion sellers and lower sales for competitors such as Shein. Urban Outfitters reported $1.5 billion in sales in the latest quarter, an 11.3% increase year-over-year, and its stock is up about 42% year-to-date. Shein has already been affected by earlier targeted changes and raised prices as operating costs increased. Reduced competitor shipments are expected to help Urban Outfitters' sales.
Read at Business Insider
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