From Tariffs to Unpredictable Weather, Here Were 5 of the Biggest Footwear Business Issues of 2024
A presidential election, severe weather patterns and stricter office policies made for a busy 2024 for the footwear industry at large.
While some industry issues, like shoe inflation, persisted from the prior year, the election of Donald Trump to the U.S. presidency pushed the industry to consider how to manage potential tariffs on foreign imports, which could raise the price of landed shoe costs even more.
Outside of prices, companies faced a slew of key business issues this year. Here, FN rounds up five that defined footwear in 2024.
Unpredictable weather
Throughout 2024, footwear executives consistently cited unpredictable and severe weather patterns as cause for sales disruptions, especially across the U.S. Several retailers, including Rack Room Shoes and DSW, closed down their stores and operations in regions that were impacted by Hurricane Milton in early October. And some companies, like Shoe Carnival, said recurring storms had an impact on sales in the third quarter.
A generally warmer fall season also contributed to challenged boot sales in 2024. Throughout the third quarter, JD Sports, Caleres, Designer Brands and Shoe Carnival said warmer fall weather impacted sales of seasonal footwear, including boots.
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Tariffs
The U.S. presidential election, and its potential impact on tariffs for foreign imports, were a hot topic among shoe leaders in the latter half of 2024.
Donald Trump, fresh off his 2024 election win, announced new tariff plans that could have dire impacts on the cost of footwear. Ninety-nine percent of the shoes sold in the United States are imported from primarily China, Vietnam and Indonesia. And Trump vowed this year to impose a 10 to 20 percent tariff on imports from all foreign countries and an additional 60 to 100 percent tariff on imports specifically from China. The President-elect also recently said he plans to impose a 25 percent tax on all products entering the U.S. from Canada and Mexico, plus an additional 10 percent tariff on imports from China.
A recent survey from The Footwear Distributors and Retailers of America (FDRA) revealed that the government’s tariff policy is the top issue for a majority of shoe executives going into 2025. And several brands and retailers, including Under Armour, Foot Locker, Steve Madden and Shoe Carnival, have said they are actively preparing for the impact by reassessing their sourcing distribution.
Return to office
The era of hybrid work broadly persisted for most shoes companies in 2024. But some companies tightened their office requirements this year, with some reversing hybrid work altogether.
Since January, Nike employees have been required to come into the office four days a week, while working remote one day a week. That policy marked an uptick from its prior requirement of three days a week in the office. And in May, Walmart said that many of its remote workers would need to relocate back to central offices across the country, but said these employees will still be able to work on a hybrid basis in these locations.
Perhaps the most drastic change came in September, when Amazon announced it would be calling its corporate employees back to the office five days a week starting in 2025. In a note announcing the change, Amazon chief executive officer Andy Jassy said the decision was made to enhance the company’s culture and increase collaborations across teams.
Innovation
From shoe brands to retailers, innovation was a top concern for executives in 2024. In some cases, the problem was a lack thereof. Nike, for example, faced criticism from analysts throughout the year that centered on its broad lag in product innovation that failed to match increased competition from other brands in crucial categories like running. This issue, in part, led the brand to bring on a new CEO to focus on innovation, among other priorities.
Meanwhile, other brands such as Skechers, Hoka, Crocs and Adidas cited innovation progress as a key reason for strong results in the front half of 2024.
Leadership changes
Within footwear and retail, CEO departures abounded for a variety of reasons. In some cases, executives moved on to new opportunities. In others, boards decided to being on a new face to help facilitate change at a faster pace.
Nike, Rothy’s, Boot Barn, Allbirds, Brooks and Under Armour were some of the year’s most notable companies that experienced a shift in the CEO role. However, other roles like CMO and CFO also saw broad turnover in the shoe industry in 2024.
Notably, Crocs, Wolverine Worldwide, Superfeet and Genesco all named female CFOs in 2024. In May, executive search firm Kirk Palmer Associates found that the percent of female CFOs in footwear has grown steadily since 2022, with eight female CFO appointments for the year as of May 2024.
