Key Beneficiaries From Chinese Tariffs Rollback - Wayfair (NYSE:W), Revolve Gr (NYSE:RVLV)

With the potential for a rollback of tariffs on "some" consumer goods that China exports to the U.S., Needham analyst Anda Andreeva provided a framework of how to think about the bottom-line impact of the company.
In her coverage, a reduction in tariffs would affect home furnishings named Wayfair Inc W and, Overstock.com, Inc OSTK, and Revolve Group, Inc RVLV in apparel & accessories.
In this exercise, she conservatively assumed that the companies directly benefit from half of the 25% tariff rollback (vendors keep half) and flow through 1/3 of that to the bottom line (home manufacturers could pass through a higher percentage to the consumer to stimulate demand and given excess supply across the industry).
A pivotal consideration to monitor is what product categories are being considered for reduced tariffs, the timing, and what portion is absorbed directly by vendors.
She estimated that Wayfair and Overstock will see the most significant benefits (while vendors have been diversifying manufacturing, China still represented ~32% of all US furniture imports).
While she did not imply that cost reduction would drive additional furniture demand, this could mean a much-needed boost to profitability.
Price Action: W shares traded higher by 7.83% at $56.31 on the last check Thursday. OSTK shares traded higher by 7.67% at $28.49.
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Needham Lists Key Beneficiaries From Potential Rollback of Tariffs on Chinese: Read To Know