By Brian Swint
PDD, the Chinese parent company of retailer Temu, reported earnings that missed expectations. Its American depositary receipts dropped.
The company is in the crosshairs of President Donald Trump's tariffs on imports, particularly from China, which specializes in producing goods at low cost. It is also taking a hit from the closing of the so-called de minimis loophole, which allowed products valued below $800 to be shipped to American consumers from Chinese factories without duties or customs procedures.
PDD said profit was 14.7 billion yuan ($2 billion), down 47% from a year earlier and below the FactSet consensus of about $3.6 billion.
The ADRs plunged 14% to $103 in premarket trading. Coming into Tuesday's session, they were up 23% this year.
A number of other retailers could also be hit by tariffs as well, including Chinese brands Alibaba, JD.com, and U.S.-giant Amazon.
Write to Brian Swint at brian.swint@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 27, 2025 06:48 ET (10:48 GMT)
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