A host of retailers are at risk of higher costs and lower sales from former President Donald Trump returns to the White House and the imposed more tariffs on imported goods, Wells Fargo researchers said. Analyst Ike Boruchow and the bank's consumer team found the tariffs proposed by the Republican nominee are likely a significant challenge for retailers. Trump has discussed a 20% tariff on all goods from all countries, as well as a 60% rate on imports from China.
Boruchow and his team looked at variables including exposure to China when scanning for retailers that most at risk. Here are four they found: Five Below was one discounter that Boruchow put on watch. High tariffs would be the latest hit after what has already been a tough year, with shares of the value-focused retailer diving 59% in 2024.
If that holds, it would be the Phaildelphia-based company's worst year on record. Despite Wells Fargo's concern, Wall Street expects a bounce ahead. Though the average analyst surveyed by LSEG only has a hold rating, their consensus price target implies Five Below shares can rebound by more than 20%.
Target is an even larger retailer that Wells Fargo is concerned will suffer from high tariffs enacted in a second Trump term. The stock has fared better than Five Below, but is still underperforming the broader market this year, rising 6%. The majority of analysts hold a buy rating on Minneapolis-based Target, according to LSEG.
The average price target suggests the stock will advance .
