Berkshire Consumer Goods Revenue Falls 5.1% Amid Tariffs and Restructuring

Berkshire Hathaway reported a 5.1% revenue decline in its consumer goods segment during the second quarter of 2025, as the company attributed the drop to U.S. import tariffs and internal restructuring efforts. The affected brands include Fruit of the Loom, Jazwares, and others within the consumer products portfolio. Sales volumes and logistics operations were reportedly impacted, leading to reduced revenue and higher operational costs [1]. The company also highlighted challenges in order fulfillment and shipping, compounding the financial pressures on this division [1].

The broader financial performance of Berkshire reflected similar strains. The conglomerate's second-quarter operating income fell by 4% to $11.16 billion, down from $11.6 billion in the same period in 2024. The insurance underwriting segment, a key component of Berkshire's earnings, also saw a nearly 11% decline in pre-tax earnings to $2.53 billion [2]. This decline underscores the far-reaching effects of current trade policy uncertainties on the company’s diverse business interests.

Amid the overall decline, one unit within the consumer goods division managed to stand out. Brooks Sports, a subsidiary of Berkshire, reported an 18.4% increase in revenue for the quarter, driven by strong unit sales. The performance of Brooks Sports partially offset the broader downturn, illustrating how certain segments can adapt to and even benefit from shifting trade dynamics [3].

Warren Buffett, the company’s long-time CEO, has consistently voiced his concerns about the use of tariffs. At Berkshire’s annual meeting in May 2025, he reiterated his stance that tariffs should not be used as a “weapon” and emphasized the global benefits of balanced trade. Buffett's comments reflect a broader skepticism of protectionist policies and align with the company’s long-term strategic focus on cost efficiency and global market access [1].

Berkshire’s earnings report highlights the growing challenges of operating in an increasingly protectionist global trade environment. While some businesses within the conglomerate have demonstrated resilience and growth, the overall financial performance signals the broader pressures faced by companies dependent on international supply chains. The company has acknowledged that the long-term impact of trade tensions and tariffs remains uncertain, emphasizing the need for strategic flexibility and operational adaptability [4].

Sources:

[1] Trump tariffs hit Buffett's Berkshire consumer goods, https://finance.yahoo.com/news/trump-tariffs-hit-buffetts-berkshire-131818362.html

[2] Warren Buffett's Berkshire Hathaway reports operating ..., https://www.cnn.com/2025/08/02/business/berkshire-hathaway-earnings-warren-buffett

[3] Berkshire Hathaway Faces Tariff Challenges, Brooks Sees ..., https://www.gurufocus.com/news/3029357/berkshire-hathaway-faces-tariff-challenges-brooks-sees-revenue-growth

[4] Warren Buffett's Berkshire Hathaway Records $5 Billion ..., https://www.investopedia.com/warren-buffet-berkshire-hathaway-q2-2025-earnings-kraft-heinz-write-down-11783791