Tariff exposure and mitigation strategies

“Tariffs is obviously a lot of discussion on what rates what countries would be impacted and what categories of goods We've been through that before and I think we have the best team to manage through.”

“I'd say our diversification efforts out of certain concentrations in countries has been quite good over the last six or seven years.”

“We've been focused on diversifying sourcing for several years. So we'll continue to assess that going forward. But our number one job in merchandising is to be the customer's advocate for value.”

“We see in our business we intend to generally maintain pricing across our portfolio.”

“We are already taking action and anticipate that 12 months from now, no single country outside of the United States will represent more than 10% of our purchases.”

“Today, more than 50% of our purchases are sourced in the United States. Over the last several years, we have worked diligently with our vendors to further diversify our global supply chain.”

“In terms of pull forward, we didn't see a lot of that. You know, we may have seen a little bit of that in appliances, but across our broader business we really didn't see any pull forward at all.”

“Now some of the important goods, obviously, tariff rates are significantly higher today than they were when we spoke in May. So as you'd expect, there'll be some modest price movement in some categories, but it won't be broad-based.”

“Despite the uncertainty and volatility in the market, we are confident that we can effectively navigate this environment. Over the last several years, our teams have done an incredible job partnering with our vendors to diversify product sourcing, which gives us unique flexibility in our supply chain.”

“First, it's super important to remember that over 50% of our products are sourced domestically and wouldn't be subject to any tariffs.”

“As I mentioned, in our Q2 call after some policy changes were made around tariffs, we would take some moderate price moves with the entire strategy to make sure we protected the project.”

“As I mentioned in our Q2 call after some policy changes were made around tariffs that we would take some moderate price moves with the entire strategy to make sure we protected the project.”

“it bears also to point out that over 50% of our inventory is not part of tariffs and is obviously sourced domestically.”

“more than 50% of our projects are sourced domestically and haven't been subject to tariffs.”

“we're mostly done with tariff-related pricing actions as it relates to the impacts back to April.”

“our exposure was kind of mid-single digits. And then if you think of like SKU price, that's right about 3% just in terms of the impact.”

“I'll quote my predecessor, Richard. He'd say, when it rains, it rains on everybody. And I think for us, we face tariffs in the past, and we believe that our merchants and buyers are equipped as anybody is to sort of work through and navigate and manage that situation.”

“We're about a quarter of our business is nonfoods, and then a subset of that is imported. So remember, it's a minority of our overall business, and then it's a smaller part of that as well we actually import the context.”

“I think from a tariff point of view, what I would say is that, first of all, there's a lot of uncertain timing and scope of changes. So it makes it difficult for anyone to predict what the impact will be with confidence. And in general, of course, tariffs raise costs.”

“About a third of our sales in the US are imported from other countries, and less than half of those are items coming from China, Mexico, and Canada.”

“As far as the tariffs go on the grocery items, you know, our buyers deal with those like they would any other cost increase.”

“We're going to do what we can should that happen.”

“I feel like our people are very well equipped to deal with anything coming our way with our reduced SKU model.”

“It would be a little bit of both. I mean, you're exactly right with our flexibility of the treasure hunt. There's not many items that we can't find something to replace or something else to bring in in that category.”

“But, obviously, that could change this year depending on what we see with inflation and also with the potential introduction of some tariffs.”

“Given events over the last week, it is difficult to predict the impact of tariffs, but our team remains agile, and our goal will be to minimize the impact of related cost increases to our members.”

“We continue to work closely with our suppliers to find ways to mitigate the impact of tariffs, including moving the country of production where it makes sense, and consolidating our buying efforts globally to lower the cost of goods across all our markets.”

“We're taking a very offensive approach to this. We're gonna do everything we can to mitigate tariff impacts. And the last effect would be we pass on price. And if we do that, we're gonna be the last one to go up and always the first one to go down on any opportunities we have out there.”

“We believe our expertise in buying, and the flexibility afforded by our limited SKU count give us greater agility to navigate the current environment and minimize the impact of tariffs.”

“Additionally, we are changing item assortment where appropriate. This includes leaning into KS items, and increasing domestically sourced goods.”

“Kirkland Signature sales penetration continues to increase, bringing even more high-quality value to our members while offsetting potentially inflationary impacts from tariffs.”

“In particular, we plan to make some extra flexibility in the near term to help us navigate uncertainty regarding tariffs.”

“we have been pulling -- moving things out of China to other places around the world, looking at going across Asia as well as Western Hemisphere, Guatemala, Honduras. So we have a much more diverse set of countries from which we produce.”

“Our teams have been hard at work to minimize tariff headwinds through multiple strategies, including negotiating with our vendor partners, reevaluating assortment decisions, changing country of production where we are able, adjusting order timing, and where necessary, adjusting prices.”

“All in, these efforts are expected to offset the vast majority of the incremental tariff exposure, thanks to the incredible work of our team.”

“with increasing uncertainty regarding the magnitude and timing of potential tariffs, we did not repurchase any shares in April. Recent news of moderating tariff rates has been very encouraging and may open the door for additional repurchase activity later in the year.”

“we're fortunate to have a strong and experienced global sourcing team and a healthy balance sheet that will allow us to weather significant volatility and continue to invest in our business, while others in a weaker position may struggle.”

“On top of those ongoing challenges, we faced several additional headwinds this quarter, including five consecutive months of declining consumer confidence, uncertainty regarding the impact of potential tariffs, and the reaction to the updates we shared on [belonging] (ph) in January.”

“the first thing that we're committing to is to deliver high-quality product at affordable prices, and that really is our North Star.”

“going back to 2017, we were 60% coming out of China. We brought that down to 30%, and we are well on our way to be less than 25% by the end of next year.”

“half of what we sell comes from the U.S. But beyond that, we have the most control of where we produce when it comes to our own brands.”

“the current tariff rates are built into the scenarios we have been working with. We've been working about inventory management over the balance of the year, how we'll play pricing and promotion. That's all bundled into our current guidance.”

“As you'll hear from Rick, the merchandising team has been working tirelessly to mitigate the impact of tariffs. And the difficulty level has been incredibly high, given the magnitude of the rates we're facing and a high degree of uncertainty on how these rates and impacted categories might evolve.”

“We have many levers to use in mitigating the impact of tariffs, and price is the very last resort.”

“a key focus will be navigating the ever-changing tariff landscape as we work to deliver on our business goals while doing what we do best, providing outstanding product at incredible prices.”

“This brings me to our approach to managing the global sourcing environment. I'm pleased that the teams are executing our playbook well and ensuring that we maintain strong assortments and excellent value for our customers with the goal of remaining price competitive.”

“Our merchants are making great progress working closely with our suppliers to help mitigate cost pressures, while ensuring a stable supply for our shared customers and accelerating our country of origin diversification to reduce our single country dependency in any given product category.”