Yahoo Finance's Karina Mitchell discusses how retailers' seasonal items for spring and summer are facing setbacks from supply chain disruptions.

Video Transcript

JULIE HYMAN: Last month, there was a little glimmer of optimism about the supply chain disruptions we have seen. There was a reduction in the backlog of container ships that were awaiting access to the ports of Los Angeles and Long Beach. But let's see if those hopes are still persisting. Yahoo Finance's Karina Mitchell is here to explain to us the latest with the port snarls that we have talked so much about. Karina.

KARINA MITCHELL: Hey, Julie. Well, the optimism was palpable exactly one month ago when there were 78 vessels waiting to offload goods, heading into the ports of LA and Long Beach. And that was down from 109. That was a peak in January, the month earlier. But now, guys, we are just days away from spring starting, and so many US retailers are still waiting for their spring summer inventory to arrive. Goods like shorts, sandals, other summer gear that they're waiting for haven't arrived. So it all goes to show that supply chain issues tied to the pandemic and strong demand haven't really abated.

So according to the Wall Street Journal, in fact, a New York company clothing line, Untucked, is still waiting for about half of its spring/summer inventory to actually show up. And they wanted to feature this in their March catalog to help sales along. But those goods are still waiting somewhere from Vietnam enroute to the US. And then companies like Under Armour as well also under pressure, saying cancelations tied to its spring and summer sales, along with supply chain issues, are going to hit its revenue by about 10%.

Of course, all that comes on the back of companies like, you know, a Lululemon, Kohl's, Abercrombie, they were all hit over the all important holiday season last quarter because of these supply chain issues. All of that now is going to be exacerbated, thanks to this war in Ukraine because, obviously, it's roiling shipping routes, whether it's by sea or by air. So there are companies now, including companies like Macy's, Foot Locker, and the parent of Michael Kors, all saying that they are going to take a hit, guys.

BRIAN SOZZI: Karina, who is managing to get supply?

KARINA MITCHELL: Well, there are a few people, surprisingly. So Tesla is one that stands out, right? Because they've actually done a good job of beating estimates when it comes to deliveries. They had record deliveries in their last quarter, even as other carmakers struggle to get parts. So Elon Musk can actually take a win there, and part of it tied to his vertical integration method.

Someone else who's done that really well is Apple. They are the masters of their own destiny and their supply lines as well. And then you have other companies, for example, the likes of Walmart and Home Depot. We all know they chartered vessels, right, to get their goods across the water.

But then now some companies are saying that it's not just an issue of getting the goods across the water. What happens when it actually gets there? Because the US has a trucker shortage, so that is impacting what happens when the goods get offloaded and how it gets to their distribution hubs because it's taking a lot longer. So it's just a whole other layer that's thrown into the mix.

And obviously, exacerbating, there is just huge demand after two years of sitting out. People want these products, right? They want to get out, they want to buy, they want to shop, especially in time for summer. But there is, of course, limited supply. And that is all adding to sky high inflation. We saw it, of course, as you guys did, in the CPI number out today.