Fashion Briefing: Fashion resale is already benefiting from fear of tariffs – Charm

This week, we take a look at the effects that President Trump’s tariff chaos is already having on fashion resale, as well as how some brands are negotiating with manufacturers and retailers to avoid price increases.

In the last week, the economic freakout about the Trump administration’s new tariff policy reached a fever pitch. The Dow Jones Industrial Average, a measure of the U.S. stock market, dropped 320 points on Tuesday as business leaders across the country lamented the new tariffs. Then, on Wednesday afternoon, those tariffs were delayed for some countries by another 90 days, in yet another last-minute shift, sending the stock market surging back up.

But while the rest of the fashion industry was worriedly watching their share prices, one sector had little to worry about: resale.

Months before tariffs really started rolling, ThredUp CEO James Reinhart told Glossy that resale may stand to benefit from policy that disincentivizes imports. Now, that prediction is holding true. Christos Garkinos, the founder of the 5-year-old luxury resale live shopping network Covet by Christos, said his business has been positively affected by the tariff news. Sales were up 50% in March and are on track to be up another 50% this month. Garkinos attributed that to customers selling off luxury goods for extra cash and buyers attracted by the inventory and tariff-free shopping.

“It’s a turbulent time,” Garkinos said. “When I’m live, I’m hearing from my clients every day. They are concerned about the economic situation, and they feel like resale is a safe place. Most of my sellers are based in the U.S. selling product that’s already here in the U.S., so they’re insulated from a lot of the concerns.”

Garkinos said he does approximately 85% of his business with U.S. buyers and U.S. sellers, with most product already being here. That means it isn’t subject to the same import duties that new products brought into the country will be. One of the most persistent criticisms of the Trump tariffs is that the infrastructure and inventory to support an inward-looking economy simply isn’t there. Too many products and services are brought in from other parts of the world meaning prices for nearly everything will increase.

But one thing the U.S. does have is pre-owned clothes. On average, Americans buy 53 new items of clothing every year. Garkinos said he’s been capitalizing on the tariff concerns while on tour to promote his new book, “Covet the Comeback,” speaking at events across the country about resale’s status as a safe harbor.

As to whether there will be any long-term negative impacts on the resale industry, Garkinos said it’s impossible to predict. But for now, he’s following the advice of investor Warren Buffet, who has often advised people to stay calm in moments of market volatility.

“We’ll see what happens, but if Warren Buffet says to stay calm, I’m staying calm,” Garkinos said.

Fashion brands have been adding resale sections to their online stores for years now, but in light of the looming tariffs, those plans are all the more urgent. Sanctuary, the Los Angeles-based womenswear brand, was working on its new resale section, Resanctuary, long before the tariff drama began. Co-founder Debra Polanco told Glossy that Resanctuary, which launched on April 2, has been in the works for over a year, but the timing was fortuitous. But Sanctuary has been eyeing the potential for tariffs for over a year in anticipation of a potential Trump victory, Polanco said.

“We started anticipating this from Trump’s first term,” she said. “We started moving things around a year ago, bringing inventory to the U.S. and working with our partners. We have manufacturing partners in seven countries, and they’ve been super supportive.”

Polanco said the inventory moves and proactive discussions with manufacturers on potential price increases have left her feeling more confident in the near future than many of her peers. Sanctuary hasn’t raised its prices yet but may do so on an item-by-item measure, based on each product’s materials and country of origin. Sanctuary manufactures in a number of countries that have been affected at different rates, but the goal is to avoid a blanket price increase. Some of Sanctuary’s manufacturers have agreed to absorb some of the added costs, as well, thanks to those early negotiations.

That also meant Sanctuary could tell wholesale buyers at its most recent market week that it would absorb any additional costs for now. By next market week, which will happen in May, Polanco said she will revisit the cost conversation with retailers, but hopes things have settled.

Despite her confidence, Polanco said the unpredictability of the administration’s stance on issues like tariffs and TikTok have made planning for the future difficult. But resale will be a part of it no matter what. Sanctuary is opening a new store in Beverly Hills later this year, and it will be the first to have a vintage and secondhand section, curated by Polanco, in the store.

Stat of the week

Two-thirds of companies who work with the material sourcing company Calico are shifting their sourcing away from China, the company told Glossy, instead moving to countries including Peru, Morocco, Turkey and Egypt. Only 2% of them are looking to move production to the U.S. It’s yet another indicator that the tariffs’ stated goal – to incentivize more companies to produce in the U.S. – may not be working as intended. Additionally, the National Retail Federation reported that U.S. imports are set to fall by 20% in the second half of 2025.

Executive moves

Victoria’s Secret, under new CEO Hillary Super, brought on an alliterative team of three new brand presidents. Anne Stephenson, Ali Dillon and Amy Kocourek were all hired this week, coming from brands like Gap, Kohl’s, Kendra Scott and Torrid.

Tara McRae was promoted this week to become the first woman to serve as Puma’s president of North America.

Laëtitia Henry and Mélanie Turpin were both brought in to key roles at the French department store Printemps. Henry will be general manager of Printemps’s historic Haussmann location, and Turpin will lead human resources.

News to know

On Saturday, Warehouse Workers United, an organization representing American workers in warehouses, led a protest through New York’s SoHo district, the home of many high-end fashion stores. The workers were protesting brands like Kenzo and Ulla Johnson, which work with Elanders/Bergen Logistics, a warehouse in New Jersey that the group said has engaged in union-busting tactics.

London-based e-commerce platform Lyst, which releases the Lyst Index tracking popular fashion brands, will be acquired by Japanese company Zozo for $154 million.

Uniqlo parent company Fast Retailing will post a 14% increase in revenue in its upcoming earnings, but concerns about how the Japanese company will be affected by the looming tariffs is at the top of investors’ minds.