Shoe Brands at FFANY and FSNYE Highlight Strong Demand As They Navigate Potential Tariff Challenges
Despite the looming threat of new tariffs on footwear imports to the U.S., the atmosphere was upbeat among retailers and brands during footwear market week in New York City.
At FFANY, the turnout was strong, with buyers from Rack Room Shoes, Nordstrom, Target, Walmart, Kohl’s, Zappos, Von Maur and more all attending the show to meet with brands.
“Retailers were coming in from all over the country, whether it was boutique retailers, specialty retailers, department stores or big chains from different categories,” said Sandi Mines, vice president of corporate engagement at Footwear Distributors and Retailers of America (FDRA) and FFANY. “It was really packed.”
Over at Footwear Show New York Expo (FSNYE) at the Park Lane New York, president Phyllis Rein was upbeat. “The show delivered 70 well-known brands and new inspiring designers, which was an increase of 20 percent this year,” she noted. “The takeaway from the show was ‘shoes aren’t just functional, they’re a powerful tool for self-expression and motivation.'”
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Tariff Talk
Overall, Mines described the sentiment across the industry as “cautiously optimistic,” though many companies are mulling how potential new tariffs on foreign imports could impact the footwear industry. Ninety-nine percent of the shoes sold in the United States are imported from primarily China, Vietnam and Indonesia, regions that could be subject to potential tariff changes under President-elect Donald Trump.
The threat of new tariffs on foreign imports could have a major impact on Toms, which does 80 percent of its production in China and 20 percent in Vietnam.
“The tariff talk around China in particular and trading partners at large is top of mind,” said Jared Fix, who joined Toms as chief executive officer in July. “We have world class manufacturing partners who are committed to this brand. So if we need to have an ex-China manufacturing strategy, we can do that.”
Baby shoe brand Robeez, which returned to FFANY in June after several years, manufactures most of its shoes in China. Jennie Leone, the brand’s director of sales, said that tariff changes would likely prompt an increase in retail prices as margins become more slim.
“The buyers I’ve spoken to understand that it’s probably going to be across the board, but unfortunately, the consumer is probably going to end up paying for it at the end of the day,” Leone said about tariffs. “We’re going to do our best to keep our price points where we can. At the end of the day, if you have a good product, that’s what matters.”
Western Chief, the Washington Shoe Company owned outdoor brand, operates all of its manufacturing and production out of China, which makes it vulnerable to potential tariff restrictions in the region. According to creative director Sara Kimball, the brand is actively seeking out potential new partners in Vietnam, the Dominican Republic and Brazil.
“I think we’re really just waiting to see where the tariffs are gonna land before we commit on which country,” Kimball said.
Journee, which has recently expanded from boots and dress into some more casual styles, is also exploring back-up options with several of its factory partners. The brand mainly manufactures in China, but noted that many of its partners have sister factories in different locations.
“I always like sourcing and keeping all my eggs spread out anyway, so I feel like there’ll be some of that,” said Marisa Byrne, brand president of the KNS International-owned Journee. “And it’s a mixture of just being proactive about how we’re comping out.”
Tariffs aside, Byrne noted that Journee is seeing demand for more transitional styles that can be worn on more than one occasion. “Versatility seems to be one of the biggest comments that I’ve heard across all of accounts,” said Byrne. “Where can she get the most value, the most bang for her buck, but also have several instances that she can actually wear that item?”
For brands that manufacture in Europe, tariffs were less of a concern.
“We don’t have the issues that many other contemporary brands do — actually, the bulk of the market,” said Nancy Nicolas, head of sales for Free People Footwear. “Because we don’t produce in China. All of our production is done out of Italy, Spain, Portugal and India.”
Nicolas added that demand from buyers is definitely picking up. “I think in this moment, everybody’s feeling bullish about the future,” said Nicolas said. “I think we’re past that cycle of uncertainty with elections. That’s over and done with.”
