The company, which owns Ross Dress for Less and dd’s Discounts, told USA Today that it is navigating the effects of tariffs, like most companies, according to a report posted Wednesday (Aug. 27).
“We were pleased to report lower-than-expected tariff-related costs for the second quarter and expect tariff costs to moderate as we move through the year,” the company said, per the report.
During the retailer’s Aug. 21 earnings call, executives said Ross Stores was working to reduce the impact of tariffs but could raise prices.
“In some places, we’ll move along and raise prices, test it,” Ross Stores Chief Operating Officer Michael Hartshorn said during the call, per the report. “It really is an area-by-area decision by the merchant, but if prices go up, it gives us the flexibility to follow for sure.”
The PYMNTS Intelligence report “Tariffs and Business Uncertainty: The Current State of Play” found that among middle-market firms, more than half of heads of payments at goods firms now believe tariffs will negatively impact their companies. That figure was up from previous months, when positive and negative outlooks were equally split at 35%.
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The report found that in response to tariff pressures, middle-market firms are actively adapting their strategies. Among goods firms, 63% plan to renegotiate pricing with existing suppliers, and 53% intend to replace overseas providers with domestic ones. However, 16% of goods firms have taken no action.
It was reported Aug. 10 that American businesses had begun making difficult decisions in response to tariffs after waiting to see their impact.
The New York Times reported that there was a strategic shift happening at companies around the U.S., with some considering solutions like raising prices and laying off workers as the tariff situation persisted.
On Aug. 8, PYMNTS reported that business executives in the United States were no longer holding out hope that the Trump administration’s global trade regime would change any time soon and had begun to regard the levies as a long-term shift by the U.S. government.
