Five Below has suspended shipments from China due to the ongoing tariffs situation, write Reshmi Basu and Carrington York for Bloomberg.
Shipping giant A.P. Moller-Maersk sent a letter to suppliers on behalf of the Philadelphia-based discount retail chain announcing that it will be suspending cargo shipments.
“In order to ensure maximum flexibility, we proactively paused orders from China given the escalation in the tariffs as we evaluate all options,” a representative for Five Below said. “We are utilizing several tools to help mitigate tariffs and swiftly assessing the best of many available options.”
After the announcement, shares declined as much as 10 percent, but the stock managed to rebound and close down 2.1 percent.
This decision is a significant one because China is Five Below’s largest source of imported merchandise.
According to Oppenheimer analyst Brian Nagel, the increased tariffs should pose costs of 90 percent to 95 percent for Five Below. This is a steep contrast from the 42 percent to 51 percent estimated after President Trump’s initial tariff announcement on April 2.
Read more about how Five Below and other retailers and businesses are addressing the ongoing tariff situation in Bloomberg.
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Editor’s Note: This post was originally published on PHILADELPHIA Today in April 2025.
