Article
Consumer Products Corner - Inventory Divides Deepen As Freight And Input Costs Rise
Discretionary inventory positions diverged sharply in Q2 as apparel and luxury brands faced expanding days inventory outstanding amid tariff-driven import acceleration and weakening demand, while big-ticket categories achieved meaningful drawdowns through disciplined working capital management. Rising crude oil prices and freight costs now threaten consumer company margins as geopolitical tensions persist and trade policy uncertainty clouds the outlook heading into midterm elections.
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