Nike, Deckers and More Shoe Stocks Are Getting Pounded After Trump Tariff Moves ‘Far Worse’ Than Expected
Katie Abel
Executive Editor
Updated, 10:51am: Wall Street rout continues, with the shoe sector hit hard.
Shoe stocks are falling sharply in pre-market trading as footwear players brace for a brutal Thursday on Wall Street following President Donald Trump‘s dramatic tariff moves.
Footwear is in the spotlight as one of the most impacted categories, with Asian countries like China, Vietnam and Cambodia — where a large portion of shoes sold in the U.S. are produced — are facing tariffs as high as 50 percent.
Nike, which makes half of its footwear in Vietnam, is among the hardest hit companies, with shares tumbling 13 percent as of 10:51 a.m. Deckers shares sank more than 17 percent, while Skechers shares have fallen more than 19 percent, Wolverine Worldwide has seen shares drop 18 percent and Under Armour is down more than 16 percent. VF Corp., parent of Vans and Timberland, is off 23 percent.
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Among footwear retailers, Foot Locker and Dick’s Sporting Goods both declined 15 percent.
All told, stocks have plunged more than 1,500 points in morning trading.
In Europe, which is well into its trading day, Puma and Adidas are also seeing notable declines, with Adidas shares falling nearly 10 percent and Puma slipping more than 11 percent.
As analysts digest the news of tariffs, the overall consensus is that the moves will deeply impact many footwear and apparel firms.
“It far worse for our coverage universe than we expected (and we think it was worse than most investors expected),” Needham analyst Tom Nikic wrote in a note.
Among the stocks he follows, Nikic said Under Armour, VF Corp. and Nike are on the “worse end” of the earnings-per-share impact spectrum given their “low margin structure” amid “recent struggles.” All three companies are in the midst of significant overhauls, and Nikic believes it will be difficult for them to weather the storm. “These three companies have little cushion to absorb incremental tariffs. In fact, we think the pre-mitigation headwinds essentially wipe out the EPS power of the companies,” Nikic wrote.
As reported on Wednesday, Trump’s reciprocal tariffs are centered around many of footwear’s main manufacturing hubs. For Vietnam, the new total is 46 percent, while China is facing an additional 34 percent tariff top of a 20 percent hike already enacted.
Matt Priest, president and CEO of the Footwear Distributors and Retailers of America (FDRA), said Trump’s announcement was “catastrophic” for American families.
“We had hoped the president would take a more targeted approach, but these broad tariffs will only drive up costs, reduce product quality, and weaken consumer confidence,” Priest said. “Quite frankly, this will accelerate “shrinkflation,” making everyday goods more expensive while delivering less. Our industry is already dealing with inflationary pressures, and this move will force families to think twice before making a purchase. That’s bad for Americans and the economy. We must do better for American families — sooner or later, the president will see that.”
