Citigroup Singled Out These Two Companies As 'Being Concerned' Over Port Closures

In a report published Thursday, Citigroup analyst Kate McShane commented that both

and

are "concerned" that the West Coast Port closures could "curtail" this full price selling season which is already shorter due to an earlier Easter. McShane noted that Steven Madden is seeing some shipments delayed by as much as five weeks while Skechers noted a three week delay in some instances with delays affecting both its retail and wholesale businesses. "Ahead of holiday, many of our retailers had been able to re-route shipments to the East Coast or used air freight as an expensive alternative for high priority merchandise," McShane wrote. "However, the AAFA noted that East Coast ports are getting backed up with the significant increase in incoming shipments." McShane added that branded U.S. retailers appear to be more vulnerable to the delays, and are most at risk of inventory issues coming out of the first quarter. Apparel categories are also more likely to be impacted versus luxury or jewelry categories that rely on air freight rather than shipping. Bottom line, the analyst stated that vendors and retailers that planned ahead or have stronger supply chains are "better positioned" and that off price retailers can also benefit from the inventory delays.