In This Article:
Footwear stocks are taking a hit as the market sell-off deepens, with reciprocal tariffs continuing to disrupt the industry.
Yahoo Finance Senior Reporter Brooke DiPalma joins Market Domination host Josh Lipton to discuss how rising tariffs on China and Vietnam are affecting sneaker giants like Nike (NKE), Crocs (CROX), and Skechers (SKX).
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
Footwear stocks getting crushed as the market sell off continues here and reciprocal tariffs reverberating throughout the industry for more we're going to welcome in now Yahoo finance senior reporter Brooke DiPalma Brooke.
Yeah good afternoon to you both certainly this came as a bit of a surprise to Wall Street especially as all these sneaker giants really turned away from China and towards other countries to produce and manufacture their goods. Once again China is facing a 34% reciprocal tariff on top of that already 20%. And then in addition to that we see Vietnam a top uh producing a top global sourcing region facing a 46% tariff now and take a look at the exposure that sneaker giants have to China and Vietnam Crocs has exposure to Vietnam 44% Deckers 64% Nike 44% Skechers 40% and on running a whopping 88% now that's largely because on running business model from the gecko was to produce a manufacture within Indonesian now many on the street are worried that this will impact margins. Nike did give us a bit of a hint here they did say that in the fourth quarter margins will be hit by roughly 400 to 500 base points just when it comes to tariffs on China and Mexico. Now it could be far worse or also hearing from the footwear uh association that in addition to that this could mean indefinitely higher prices for consumers which is definitely not good here.
Mhm.