URBN is not worried about de minimis, but investors are concerned about tariffs impacting the company’s business. E-commerce companies like Shein and Temu are raising prices and changing advertising strategies due to import duties on direct-to-consumer parcels. URBN’s CEO believes the end of the provision will benefit Urban Outfitters, as the company’s sales were minimally impacted by the exemption. Despite potential benefits, URBN expects to be impacted by tariffs, with a 75 basis point impact on gross margins anticipated. The company is implementing strategies to mitigate the impact of tariffs and improve gross margins by 100 basis points by fiscal year 2026.

Read more at Yahoo Finance: When It Comes to De Minimis, Shein’s Loss Could Be Its Gain