The global footwear industry is confronting a volatile mix of economic stressors and strategic realignments. Rising import tariffs, evolving consumer preferences, and a renewed focus on sustainability are redefining how brands operate in the post-pandemic retail environment.
From price increases and digital expansion to lawsuits and ethical sourcing, footwear companies are navigating complex terrain to stay competitive. Some are scaling back, others doubling down—but nearly all are recalibrating in response to forces outside their control.
Tariff Pressures Complicate Forecasting
One of the most immediate challenges is the uncertainty surrounding U.S. trade policy.
Crocs Inc. recently pulled its full-year guidance, citing anticipated tariffs on Chinese imports as a risk too great to ignore. The company projected an exposure of up to $130 million and warned of possible order cancellations to mitigate the potential hit.
While sales of its HeyDude brand showed modest gains, Crocs' flat growth in core products underscores how fragile momentum can be when trade policy looms overhead.
A broader coalition of footwear companies, including Nike, Adidas, and Under Armour, have echoed these concerns in recent months.
With roughly 99% of shoes sold in the U.S. imported—many from China—the group argued that additional tariffs would exacerbate inflation and disproportionately affect lower-income households, especially as families shop for school footwear.
As the U.S. considers reimposing some of the highest footwear duties in decades, the stakes for pricing and inventory strategy have never been higher.
Brands Raise Prices, Recalibrate Distribution
Faced with inflationary pressures and tariff threats, many brands are taking pricing action.
Nike has re-entered the Amazon marketplace after a six-year absence, a move that reflects its aim to scale its digital footprint amid shifting consumer behavior. Alongside this, the company raised prices on several key footwear lines, with hikes ranging from $2 to $10 per pair.
While Nike attributed these increases to broader market trends, industry analysts point to tariffs as a driving factor behind these adjustments.
Meanwhile, Skechers is navigating internal upheaval. The company is embroiled in legal proceedings following a $9.4 billion go-private deal led by 3G Capital.
Shareholders allege the deal undervalues the company and lacked full transparency. Despite healthy earnings and stable sales, the controversy casts a shadow over the company’s transition and highlights growing scrutiny over how footwear brands manage both public and private interests.
Adidas, too, is adjusting strategy. The brand is clearing overstocked inventory via outlet stores and third-party retailers while also signaling further price realignments in major markets.
These moves reflect a broader pattern: brands are recalibrating product mix and channel strategy to balance margin protection with consumer accessibility.
Ethical Sourcing Gains Momentum
Sustainability is no longer optional—it’s an expectation.
In early June, Asics joined a growing list of brands phasing out kangaroo leather from soccer cleats. The move comes as California enforces bans on products derived from kangaroos, and international pressure builds for ethical sourcing of performance materials.
Asics plans to replace the material with a synthetic alternative called Medialite, which the company claims delivers equal, if not superior, performance benefits.
This shift follows similar announcements from Nike, Puma, and Adidas. It also aligns with the rise of environmentally forward brands like Allbirds and Veja, which have carved out market share by offering vegan-friendly, low-carbon alternatives.
Mainstream brands are increasingly responding by embedding sustainability into product design, marketing, and compliance frameworks.
Physical Retail Finds New Life
In a surprising counterpoint to the industry’s digital migration, physical retail continues to show vitality—particularly for experiential and value-driven formats.
Shoe Carnival, a value-oriented footwear chain, recently announced it will open 13 new stores this year, including its first in Nevada and New York. The retailer is also converting all of its existing locations to its new “Shoe Station” concept by year-end.
CEO Mark Worden described the rollout as “an exciting chapter of aggressive growth” and emphasized that these locations are outperforming expectations in both revenue and customer engagement.
The redesigned stores offer broader assortments and are meant to appeal to families and budget-conscious shoppers seeking an in-store discovery experience.
This development complements the expansion plans of recovery-focused footwear brand OOFOS, which has opened flagship stores in Boston and San Jose.
While OOFOS targets performance and wellness audiences, and Shoe Carnival emphasizes price and variety, both moves underscore a key insight: for the right customer and product, in-person retail still matters.
Outlook: Adaptation or Attrition
The convergence of global tariffs, legal uncertainty, changing sourcing norms, and shifting channel dynamics paints a turbulent picture for footwear brands.
Those with flexible supply chains, strong digital infrastructure, and a willingness to adjust are finding ways to grow. Others face the risk of obsolescence in a marketplace increasingly shaped by geopolitics and climate ethics.
With mid-year approaching, the pressure is on for companies to finalize sourcing decisions ahead of peak holiday and back-to-school seasons.
If tariffs are reinstated at the projected levels, pricing and promotion strategies will need urgent rework.
Meanwhile, the continued investment in physical spaces—especially among value and performance brands—suggests that omnichannel approaches are more critical than ever.
