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As the World Economic Forum continues in Davos, Switzerland, Yahoo Finance Executive Editor Brian Sozzi is joined by Ralph Lauren (RL) CEO Patrice Louvet to check in on the retail space ahead of tariffs expected from US President Donald Trump's second administration.
"What we've come to realize, and this is true for sourcing, but it's true for our overall approach as a company's diversification is critical," Louvet tells Yahoo Finance. "We're paying attention to tariffs, as you can imagine, we didn't start to think about it yesterday," the CEO says, adding "We've been planning for this for a while, but I think we're nicely set up to navigate this more volatile environment because of the diversification of sourcing that we have."
Louvet says that Ralph Lauren has shifted away from China, but the company does rely on China for some products, like certain sweaters and footwear. " The CEO says that significant tariffs on imports from China will "likely" translate into higher prices for consumers.
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Watch the video above to hear more about Ralph Lauren's tariff plans, the state of the consumer, and the retailer landscape.
Click here for more of Yahoo Finance's coverage from the World Economic Forum in Davos.
This post was written by Naomi Buchanan.