Import Costs, Tariff Pressures Suggest Turbulent 2026 For Shoe Firms, But Some Optimism Takes Hold

Group 1 - The footwear industry is facing challenges in the first half of 2026 due to higher landed costs for imports and tariff-related pressures [1] - A significant portion of respondents (44%) expect landed costs to rise by 1% to 10%, while 25.5% anticipate increases of 11% to 20%, and 4.3% foresee rises exceeding 20% [2] - Retail price increases are expected, with 23.4% of respondents predicting hikes of 1% to 5%, 29.8% expecting increases of 6% to 10%, and 14.9% forecasting spikes of more than 10% [2] Group 2 - The full impact of tariff increases has not yet been fully realized in the industry, leading executives to model significantly higher landed costs for 2026 [3] - Footwear firms previously pulled forward inventory receipts to mitigate rising costs, but such opportunities have now ended, raising concerns about pricing sustainability amid ongoing inflation [4] - Despite concerns about the economy and consumer behavior, over half of respondents report improved sales prospects, with 45.8% indicating higher sales compared to six months ago and nearly half expecting further sales increases in the next six months [5]