Steve Madden said Thursday that it will slash the goods it imports from China by as much as 45% over the next year as it braces for President-elect Donald Trump to carry out his pledge for steep tariffs on imports from other countries.

On an earnings call, CEO Edward Rosenfeld said the shoe brand has been “planning for a potential scenario in which we would have to move goods out of China more quickly.” Over the past few years, he said, it’s looked for factories in other countries, including Cambodia, Vietnam, Mexico and Brazil.

“As of yesterday morning, we are putting that plan into motion,” he said Thursday. “And you should expect to see the percentage of goods that we sourced from China to begin to come down more rapidly going forward.”

Rosenfeld said imports to the U.S. account for about two-thirds of Steve Madden’s business. Of that, he said, “we currently source a little bit more than 70% of those goods from China.” That means slightly less than half of its business would be at risk of tariffs on Chinese imports, he said.

“Our goal over the next year is to reduce that percentage of goods that we sourced from China by approximately 40% to 45%, which means that if we’re able to achieve that and we think we have the plan to do it, that a year from today, we would be looking at just over a quarter of our business that would be subject to potential tariffs on Chinese goods,” he said.

Trump is expected to put pressure on companies to move more of their production to the U.S. During his presidential campaign, Trump said he would impose a 10% to 20% tariff on all imports, including tariffs as high as 60% to 100% for goods from China.

Other retailers and brands have already made a push to diversify sourcing because of a variety of factors, including reduced labor in China because of its growing middle class and as part of an effort to bulletproof their supply chains after disruption from the Covid pandemic and Red Sea shipping crisis.

Retail analysts and trade groups have warned the proposed tariffs could drive up prices for U.S. consumers and soften spending.

Tarang Amin, CEO of makeup and skin care maker E.l.f. Beauty, said it may have to raise prices on some of its items if tariffs take effect. He said the company has moved more of its production outside of China since tariffs began under Trump’s first administration.

For Tapestry, the parent company of Coach and Kate Spade, less than 10% of overall sourcing comes from China, the company’s CFO, Scott Roe, said on a Thursday earnings call. He said the handbag-, apparel- and accessory-maker is watching tariff policy closely, but has gotten plenty of practice with staying nimble.

“My goodness, we’ve had so many disruptions and challenges that have forced us to make adaptions based on port strikes and freight lanes, whatever it might be, tariff regimes changing over time,” he said. “So we’re pretty well versed in managing through this.”

— CNBC’s Gabrielle Fonrouge contributed to this report.

E.l.f. Beauty raised its full-year guidance on Wednesday after posting a 40% growth in sales. 

Shares of the company rose nearly 10% in after-hours trading.

The cosmetics retailer’s earnings came in well ahead of expectations on the top and bottom lines and it now expects sales to be between $1.32 billion and $1.34 billion during fiscal 2025, ahead of the $1.30 billion analysts had expected, according to LSEG. 

Here’s how E.l.f. did in its second fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

• Earnings per share: 77 cents adjusted vs. 43 cents expected
• Revenue: $301 million vs. $286 million expected

The company’s reported net income for the three-month period that ended Sept. 30 was $19 million, or 33 cents per share, compared with $33 million, or 58 cents per share, a year earlier. Excluding one-time items, E.l.f. saw earnings of $45 million, or 77 cents per share.  

Sales rose to $301 million, up about 40% from $216 million a year earlier. 

E.l.f. raised its full-year revenue guidance from a previous range of $1.28 billion to $1.3 billion and also raised its adjusted earnings guidance. The retailer is expecting adjusted earnings to be between $3.47 to $3.53 per share, up from a prior outlook of between $3.36 and $3.41 per share. Analysts had been looking for earnings guidance of $3.51, according to LSEG. 

The cosmetics company has been on a tear over the past couple of years thanks to its viral marketing and its prowess in winning over young shoppers with its value versions of prestige favorites. 

“We’re seeing multi-generational appeal on E.l.f. Not only are we the No. 1 brand amongst Gen Z by a pretty wide margin, but we’re also the most purchased brand amongst Gen Alpha and millennials,” CEO Tarang Amin said in an interview with CNBC. “We’re picking up consumers in pretty much every age and income cohort, which is great to see, and I think just talks to the strength of our strategy and the quality of our products.” 

Amin said that success has led both Target and Walgreens to plan to expand the shelf space they allot for the retailer starting in the spring. 

During the quarter, E.l.f.’s selling, general and administrative costs rose by $74 million to $186.1 million, or 62% of net sales, but it still managed to post a 71% gross margin, an increase of 0.4 percentage points from the year-ago quarter. 

Amin attributed the increase in margin to favorable foreign exchange rates, previously enacted price increases internationally and its overall value proposition. 

“Our ability to engineer prestige quality at these extraordinary prices has been the real driver, but most of our margin progress over the years has been through our innovation mix,” Amin said. “As we introduce a new one of our holy grails, it gives us the opportunity to inch up margin a little bit while still offering an incredible value.” 

The company has also been building out its international sales, which now make up about 21% of overall revenue. 

Amin said its exposure to markets outside of the U.S. will help soften the blow from any tariff hikes that could come under President-elect Donald Trump.