Brazil's Tok&Stok reveals in its latest business update that its retail business profit margin has suffered a significant impact.

This pressure originates from the company’s strategic decision made in the fourth quarter of last year—to independently absorb the additional tariff costs rather than passing them on to consumers. It is worth noting that due to the delivery cycle characteristics of furniture products, the goods associated with the tariff costs absorbed in the fourth quarter will, in fact, be delivered to customers in the first quarter of this year. This means that the related financial impact will be reflected collectively in the financial statements for the first quarter. Although this decision has squeezed profit margins in the short term, it demonstrates the company’s long-term considerations in maintaining market share and customer relationships.