US footwear makers extend declines on tariff turmoil

VF

07/04/2025 15:01

Updates

** Shares U.S.-listed footwear makers slip in early trading on President Donald Trump's tariffs and rising recession fears .N

** Trump's tariffs on Asia production hubs, including Vietnam, Indonesia and China, are a major blow to Nike NKE.N and Roger Federer-backed On Holding ONON.N, among others

** Nike shares fall 17% and On drops nearly 18% since Trump imposed tariffs on April 2

** Nike, VF Corp VFC.N, Under Armour UAA.N among companies at high risk of a margin squeeze, TD Cowen analysts write, trimming price targets

** "The U.S. retail ecosystem is largely built off low-cost labor and high volume production in Asia," brokerage says

** "Tariff mitigation will occur (sharing cost with suppliers) but there are zero countries with capacity to shift production and suppliers operate on thin margins"

** Shares of Nike down 5.8% and On fall 6.6%

** Under Armour drops 6.3%, VF Corp 5.9% and Lululemon Athletica LULU.O 4.5%

** Sporting goods retailers Foot Locker FL.N falls 6.7% and Dick's Sporting Goods DKS.N falls 7.2%

 (Reporting by Ananya Mariam Rajesh in Bengaluru)

 ((AnanyaMariam.Rajesh@thomsonreuters.com ; X: https://twitter.com/AnanyaMariam))