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Rise in Inventory Levels Ahead of Tariffs Could Indicate Gross Margin Problem Later

When it’s deliver-or-die, supply chains become the lifeblood of a company. To that end, the fashion industry has embraced technology to navigate today’s hyper-complicated supply chain, with myriad solutions shaping the first, middle and last mile. Call it Sourcing 2.0.

Retailers looking at different ways to mitigate the impact of rising tariffs have been stocking up on inventory to avoid passing along the increase to customers just as sales have been on the decline. And that’s a strategic move that could have at least one unintended consequence. UBS analyst Jay Sole said inventory growth at…

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