Please, there is no political angle with this question but one I wish to ask the Theme Park Insider community.
When visiting World of Disney at Disney Springs I always buy a lot of merchandise for the grandkids as well as a few thing for the wife and myself. For years I have noticed that almost everything sold in WoD is "Made in China". With massive tariffs on almost everything from China which must hit Disney merchandise will the Disney fans still buy the items even if they are double+ the price they were last month?
Do Disney have any dispensation?
It could potentially have a huge impact to the overall P&L accounts which could affect the stock price.
Given the tarriff stuff literally changes day to day, hard to figure what can occur.
Thanks, Robert. I appreciate the reply.
Good question. I am sure than many business analysts are doing a lot of math right now, trying to figure out what to do next.
There's a fairly long lead time for merch, so tariffs starting now would not affect anything on the racks at Disney for some time. Given how swiftly decisions get made and reversed on tariffs at the moment, I suspect that many retailers are just holding off on orders to wait and see if the tariff policy changes.
Disney also need to factor in travel trends to determine how much merch it will need 6-12 months or more from now. Given the pessimism about international travel (and those visitors spend way more on merch), merch advance orders might be coming down anyway.
Again, it's a lot of throwing numbers at a spreadsheet and guessing what will stick right now.