There are quite a few winners in the Australian fashion market following the 90-day pullback on tariff impositions between China and the United States.
Earlier this week, the White House confirmed both countries will each lower tariffs by 115 per cent while retaining an additional 10 per cent tariff for the next three months. Other U.S. measures will remain in place.
This means the 145 per tariff on China will drop to just 30 per cent.
China has also agreed to remove its retaliatory tariffs, and will also suspend or remove the non-tariff countermeasures taken against the United States since April 2 this year.
China will suspend its initial 34 per cent tariff on the United States it announced on April 4 for 90 days, but will retain a 10 per cent tariff during the period of the pause.
In response, most fashion brands recorded green swings in their share price this week.
Online luxury platform Cettire recorded a 20 per cent boom, peaking at 60 cents per share from a low of 46 cents, and has since balanced at 55 cents at close of trade on May 13.
Universal Store – which also manages Thrills and Perfect Stranger – hit a peak of $8.60 per share, bumping up nearly 30 cents immediately following the tariff changes.
Meanwhile, City Chic has improved its share price by around 16 per cent over the last five days, hitting 90 cents per share at close of trade on May 13.
Other key winners include low-price jeweller Lovisa, with a share price lift of more than $3 over the last five days, and lifting by nearly $1 following the tariff changes.
Accent Group came close to hitting $2 per share, after nudging up by just over 6 per cent from a recent low of $1.85.
Another notable lift was Premier Investments – parent company of Smiggle and Peter Alexander – with its share price peaking at $22.00, up from $21.16 before the tariff changes. This share price has since balanced to around $1.70 at the time of writing.
But not all players had a good week, with Big W’s parent Woolworths Group recording a share price slip of nearly $2 following the tariff changes, balancing at $31.56 by close of trade on May 13.