How retail accounting could distort profitability as tariffs take effect
1. Tariffs increase costs for U.S. retailers impacting their bottom lines. 2. Retail Inventory Method (RIM) may overstate retailer profitability initially. 3. Major retailers like Walmart report earnings amidst tariff impacts this week. 4. Profits may vary in future earnings reports as tariffs stabilize. 5. RIM accounting can distort actual profitability perception due to cost averaging.