Mad Money

Zappos CEO says trade war tariffs haven't impacted pricing yet

Key Points
  • Tariffs from the U.S.-China trade war haven't yet put pressure on Zappos' pricing, CEO Tony Hsieh says.
  • Hsieh's comments are the latest indication that the tariffs haven't hurt the U.S. economy as much as initially expected.
  • Zappos, which is celebrating its 20th anniversary, may not be impacted as much by the shortened holiday season as other retailers, he tells Jim Cramer.
Trade war tariffs haven't impacted pricing yet: Zappos CEO

Tariffs from the U.S.-China trade war haven't yet put pressure on Zappos' pricing, CEO Tony Hsieh told CNBC's Jim Cramer on Tuesday.

While Cramer noted that a lot of shoes are made in China, Hsieh said on "Mad Money" that, "for us we haven't seen it affect our pricing yet, so too early to tell."

Hsieh's comments on the impact of the tariffs — or lack thereof — are the latest indication from business executives that President Donald Trump's long-running trade talks with China are not impacting American consumers as significantly as some expected.

Part of that impact has been offset by major corporations such as Target and PVH, which owns Calvin Klein, applying pressure on their suppliers, a strategy that PVH CEO Emanuel Chirico noted on "Mad Money" on Monday.

Chirico said he, too, did not believe the tariffs had dented consumer spending but warned that it becomes increasingly less likely as the trade war drags on.

"I think we could all manage it in the short term, with the hope that it would resolve, because you could put pressure on your vendor base to do certain things," Chirico said Monday. "But in the long term, it's got to work on both sides, so it clearly will result in higher costs for the consumer, which is not good for the economy."

Even if tariffs end up putting pressure on Zappos, which is celebrating its 20th anniversary, Hsieh said he believes its loyal customers would continue shopping with the company due to its commitment to customer service.

"What we've found is consumers are willing to pay for that and really appreciate that," he said.

Another thing analysts expect may hurt retailers is the shortened holiday season, and it remains to be seen how that could affect Zappos.

Hsieh noted that the company's holiday season really begins on Cyber Monday, which is the Monday following Thanksgiving, so "it's a little too early to tell right now."

"But we do know from the past that customers do know how fast our shipping is and they can order one day and know that it will be on their doorstep the very next day," he said. "So the fewer number of days in the holiday maybe doesn't affect us as much as it might other online retailers."

Zappos CEO: Trade war tariffs haven't impacted our pricing yet

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