US footwear makers set to extend declines on tariff turmoil

VF

07/04/2025 11:25

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

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

** Nike and On shares are down nearly 12% 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 4% and On fall 5.8% before the bell

** Under Armour drops 2.7%, VF Corp 7.2% and Lululemon Athletica LULU.O 5.2%

** Sporting goods retailer Foot Locker FL.N falls 5.1%

 (Reporting by Ananya Mariam Rajesh in Bengaluru)

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