0936 ET - The U.S.-Vietnam trade deal and its 20% import tariff are a negative for softline retail stocks as they increase the probability that more tariff increases are coming for other countries, UBS analysts say in a research note. They expect Wall Street CY25-26 EPS estimates will fall 3% to 5% for the average stock in that sector, with Victoria's Secret, G-III Apparel Group and Under Armour being among the most exposed stocks. The situation is worse for athletic footwear brands that won't have an easy time diversifying their sourcing away from Vietnam, the analysts say. Softline stocks rose on the deal, possibly because the market priced in a higher Vietnam tariff, thought more tariff increases aren't coming and believes tariff costs will be easy to mitigate, the analysts say. (dean.seal@wsj.com)

(END) Dow Jones Newswires

July 03, 2025 09:36 ET (13:36 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.