Activist Investor Elliott Wants Changes at Sumitomo Realty & Development
The activist investors, which hold a more than 3% stake in Sumitomo, said in a letter to the Tokyo real-estate company Monday that there is dissatisfaction among investors about its current course.
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US-Vietnam Trade Deal for 20 Percent Tariff Raises Some Big Questions
The only certainty for the footwear industry is that price inflation for shoes is still on the horizon, even with a new trade deal supposedly unfolding between the U.S. and Vietnam. The deal, once finalized, is critical for footwear as Vietnam accounts for about 25 percent of shoe manufacturing — and the country has become the go-to place for sneaker production. More from WWD Shoe Stocks Mixed as US-Vietnam Trade Deal Framework Revealed Tariff Fears Prompted Some Shoe Firms To Get Out of China Fast: But Did They Move Too Quickly? Hill House Home, ViBi Venezia Step Into Summer With Floral Collab U.S. President Donald Trump revealed his latest trade move on Truth Social Wednesday, one week ahead of the July 9 deadline when the temporary pause on reciprocal rates are supposed to end. 'Vietnam will pay the United States a 20 percent tariff on any and all goods sent into our territory, and a 40 percent tariff on a Transshipping,' he said, adding that Vietnam will also give the U.S. 'total access' to their markets for trade. After pointing out that the access is something Vietnam has never done before, Trump also said the U.S. will be able to sell American product 'into Vietnam at zero tariff.' The transshipping component is aimed at barring Chinese manufacturers from circumventing China tariffs by shipping first to Vietnam before it heading to its final U.S. destination. 'Vietnam is essential to the U.S. footwear supply chain, especially for athletic shoes. In 2024, we imported 274 million pairs from Vietnam, accounting for over half of all athletic footwear imports by volume and value,' Matt Priest, president and CEO of the Footwear Distributors and Retailers of America (FDRA), said in a statement. 'With $10.6 billion in shipments last year, Vietnam is on pace to become our largest supplier in 2025. Disrupting that pipeline with additional tariffs would hit American consumers and our industry hard.' Priest has repeatedly called for the Trump administration to acknowledge the steep footwear duties already in place. He noted that many shoes, especially popular athletic shoes, already carry a 20 percent tariff, and that adding new tariffs on top of that is 'bad economics.' In a telephone interview, Priest said that 'some of our own sources are saying that not everything's been decided,' and that discussions are continuing to finalize the terms. He said that what the industry needs is certainty, and that's what they don't have yet since there's still a lot of unknowns. 'Will we get credit for what we already paid? We already paid 20 percent for sneakers out of Vietnam, so do we get credit for that or will this be on top of what we already pay? We're still trying to figure all that out,' Priest said. As for the transshipping component, Priest said what that might mean is also unclear. One thing is clear, however, and that's that shoe prices are going higher. According to Priest, duties on kids shoes in April alone were up nearly 300 percent year-over-year, and FDRA's chief economist Gary Raines has already noted evidence 'upstream in the supply chain of surging average duties per pair on footwear imports' that is expected to push the average landed cost of footwear imports higher, which in turn will pressure retail footwear prices to climb later this year. BTIG analyst Janine Stichter wrote in a note on Tuesday that while there have been some selective price increases already, most of the adjustments upwards won't occur until this month. And even with temporary reductions in tariffs — 30 percent for China through Aug. 12 and 10 percent for all other countries through July 9 — to allow for negotiations on new trade deals, Stichter said 'pricing is still likely a necessary lever to offset' some of those cost increases. And on Wednesday, she wrote that while the stated 20 percent tariff on Vietnam is higher than the temporary 10 percent pause rate, it is still 'much less onerous than the initially proposed 46 percent reciprocal rate.' And while the rate adds incremental margin pressure for those with Vietnam exposure, Stichter said the 20 percent tariff 'should be mitigated over time for most.' The American Apparel and Footwear Association's president and CEO Steve Lamar said the organization is 'pleased that further progress' is being made on reciprocal trade deals. 'With respect to Vietnam — the second largest supplier for footwear, apparel, and accessories sold into the U.S. market — we look forward to learning the details related to today's news so that we, together with our members, can evaluate how well it will provide relief and certainty,' Lamar said. 'Is vital that the final terms of this deal, and any future deals, enable U.S. brands and retailers, and our 3.6 million American workers, to continue to be able to supply American consumers with affordable, responsibly made, ethically sourced, and authentic fashion.' Rick Helfenbein, an independent consultant and former AAFA chairman, president and CEO, said the 20 percent tariff increase remains a high number for apparel and footwear importers, but still 26 percent lower than where they started on April 2 when reciprocal tariffs were first announced by Trump. 'Expect that USA importers and Vietnamese manufacturers might find a way to split the difference — resulting in some price inflation, but avoiding a serious retail disaster — especially for the footwear industry,' he concluded. Meanwhile, the U.S. is said to be working on tariff talks with China now that a U.S.-China rare earth minerals trade deal has deescalated tensions between the two countries. Trump at one point raised tariffs to 145 percent for China imports to the U.S., then lowered that to 55 percent, including previous tariffs stacked on top of the new rate. The rate was lowered temporarily in May to 30 percent so trade-deal talks can take place prior to Aug. 12. With China and Vietnam having preliminary agreement status, there has been just one other trade deal finalized and that's with the U.K. A fact sheet from the Holland & Knight law firm provided a status update for bilateral trade deal talks. There are 14 countries where negotiations remain ongoing: India, Japan, South Korea, Mexico, European Union, Canada, Thailand, Cambodia, Malaysia, Philippines, Taiwan, Indonesia, Pakistan and Switzerland. Argentina is also on the list, but there's been no update since March 4, 2025. The law firm noted that on Monday, Trump said that a 'very big' deal with India, a footwear production hub, is likely to be finalized soon. Talks with Mexico are centered on a potential quota system to reduce the 50 percent tariffs on steel imports, while Cambodia has submitted a detailed proposal ahead of the July 9 deadline and the two countries are 'now engaged in a multi-round negotiation process.' Also as of Monday, the law firm said Indonesia has eased licensing requirements on import rules and offered to increase U.S. access to critical minerals as part of its effort to advance the talks that are in progress. With July 9 right around the corner, Trump's next move is anyone's guess. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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44 minutes ago
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Will Trump's tariffs kill global trade?
-- President Trump's tariffs are feared by many to be the catalyst for deglobalisation, threatening to upend decades of painstakingly built global trading ties. But Capital Economics isn't convinced the world is heading for a wholesale retreat. Instead, the research house argues the most likely scenario is a decoupling into US- and China-led blocs, rather than a collapse in global trade. While Trump's proposed tariffs could deliver a meaningful hit to global commerce, Capital Economics sees the impact as significant but contained. 'Trump's tariffs will cause real goods trade to fall by around 1% in the next two years, both by introducing frictions into the trading system and by causing global demand to weaken,' Capital Economics analysts said in a recent note. The analysts estimate the effective US tariff rate would jump to around 10% for most countries and 40% for China, but much of the drop in US imports from China would be offset by increased imports from other Asian economies, including India, and by China redirecting exports elsewhere. While globalisation may have peaked, a dramatic unwinding is unlikely without much broader protectionist moves or significant retaliation, according to Capital Economics. 'A lot of the fall in US imports from China will be offset by a rise in imports from elsewhere, while China's exports will be redirected to other economies. So we think a reasonable base case is for goods trade as a share of GDP to remain around 45%." The more likely scenario is a 'splintering into US- and China-led blocs,' with the US bloc representing the lion's share of global GDP and the China bloc comprising a larger population but far less economic heft. 'China has a large number of countries in its camp, but most are small in economic terms… China still relies far more on the West for both final demand and inputs,' the analysts added. Related articles Will Trump's tariffs kill global trade? Fed's Bostic says tariffs effects may take a year 'to fully play out' President Trump's views on Japan tariffs may be misinformed, says PM Ishiba Sign in to access your portfolio
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44 minutes ago
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Kimco Realty Stock Rises 12.3% in Three Months: What You Should Know
Shares of Kimco Realty KIM have gained 12.3% in the past three months compared with its industry's upside of 7.4%. This Jericho, NY-based retail real estate investment trust (REIT) is well-poised to benefit from its portfolio of premium shopping centers, which are predominantly grocery-anchored, in the drivable first-ring suburbs within top major metropolitan Sunbelt and coastal markets. A diversified tenant base assures stable cash flows. Its focus on developing mixed-use assets bodes well for long-term growth. Analysts seem bullish on this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share increased 2 cents in the past two months to $1.73. Image Source: Zacks Investment Research Let's find out the possible factors behind the surge in the stock price. Kimco's properties are located in the drivable first-ring suburbs within the top major metropolitan Sunbelt and coastal markets. Particularly, 82% of the annual base rent ('ABR') comes from its top major metro markets. Given the strategic location of its properties, it is likely to witness healthy demand in the near term. Kimco enjoys a diverse tenant base, led by a healthy mix of essential, necessity-based tenants and omni-channel retailers. National/regional tenants accounted for 82% of KIM's pro rata ABR as of the end of the first quarter of 2025. Given the strength of its retailers with a developed omnichannel presence, the company is likely to generate stable cash flows. During uncertain times, the grocery component saved the day for retail REITs. In the first quarter of 2025, Kimco achieved its target of 85% ABR for the grocery-anchored portfolio, from 78% in 2020. Given the necessity-driven nature of Kimco's grocery-anchored portfolio, it is likely to continue witnessing healthy leasing activity in the upcoming period and remains well-positioned to tide over challenging times. The company also emphasizes mixed-use assets clustered in strong economic metropolitan statistical areas. The mixed-use assets category is benefiting from the recovery in both the apartment and retail sectors. Particularly, the company is targeting an increase in net asset value through a selected collection of mixed-use projects, redevelopments and active investment management. Moreover, Kimco maintains a solid balance sheet position. It exited the first quarter of 2025 with $2 billion of immediate liquidity. It also enjoys investment-grade ratings of A- from Fitch, BBB+ from S&P and Baa1 from Moody's, rendering it favorable access to the debt market. With a healthy financial footing, KIM is well-positioned to capitalize on long-term growth opportunities. A rise in e-commerce adoption and efforts of online retailers to go deeper into the grocery business are concerns. Moreover, Kimco faces competition from several real estate companies and developers who compete with the company for leasing space in shopping centers. This may affect the company's ability to raise rental rates, including renewal rates and fill vacancies. Some better-ranked stocks from the broader REIT sector are Curbline Properties Corp. CURB and VICI Properties VICI, each currently carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for CURB's 2025 FFO per share stands at $1.00, indicating an increase of 26.6% from the year-ago reported figure. The Zacks Consensus Estimate for VICI's 2025 FFO per share is pinned at $2.35, suggesting year-over-year growth of 4%. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kimco Realty Corporation (KIM) : Free Stock Analysis Report VICI Properties Inc. (VICI) : Free Stock Analysis Report Curbline Properties Corp. (CURB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
