Latest news with #FDRA
Yahoo
4 days ago
- Business
- Yahoo
Shoe Prices Dip in June but Tariff Pressures Could Lead to Increases Later This Year, FDRA and AAFA Say
Shoe prices were lower again in June as overall inflation climbed last month, according to the latest data from the Footwear Distributors and Retailers of America (FDRA). In June, retail footwear prices dipped 0.6 percent, the smallest decline in the last four months, the FDRA noted. This comes as prices were mixed across each target market last month. Men's footwear prices grew 0.2 percent, the first increase also in four months. But, women's and children's shoe prices both declined 1.1 percent from the same time last year. More from WWD President Trump's Tariffs Spark Reactions in Italy Mexico, EU Tariff Threats Follow Double-digit Trend: How Shoe Firms Are Responding Trump Tariffs Hit America's Furniture Heartland as Howard Miller Company Announces Closure Gary Raines, chief economist at FDRA, told FN that last month's declines 'peg year-to-date footwear prices modestly lower from the same first half of last year.' 'But we note up the supply chain average duties per pair on footwear imports are surging,' Raines said. 'These sharply higher duties soon may push the average landed cost of footwear imports sharply higher, which in turn may pressure retail footwear prices to climb later this year.' Steve Lamar, president and chief executive officer of the American Apparel and Footwear Association (AAFA), added that 'inflation continues to be on everybody's minds, particularly with the high tariffs that have been imposed on all our supplier countries.' 'Today's data suggest that these costs are beginning to work their way through supply chains as cost and price increases on other parts of the economy, just as we expect they will thread their way through our supply chains too,' Lamar said. 'Our hope is that new deals, with permanent and manageable tariff levels and rules, can quickly be negotiated and announced so we can get ahead of these expected cost pressures.' Last month's drop in retail footwear prices also comes at the same time the Bureau of Labor Statistics reported that overall inflation ticked higher in June. The bureau's latest Consumer Price Index (CPI), a broad measure of goods and services costs across the U.S. economy, saw prices increase 0.3 percent on a seasonally adjusted basis in June, after rising 0.1 percent in May. Prices were also up 2.7 percent over the last 12 months, after rising 2.4 percent the prior month. Excluding volatile food and energy costs, the core CPI rose 0.2 percent in June and increased 2.9 percent over the same time last year. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Sign in to access your portfolio
Fibre2Fashion
6 days ago
- Business
- Fibre2Fashion
US footwear industry urges tariff relief ahead of school season
As reciprocal trade deals near finalisation, footwear industry leaders led by the Footwear Distributors and Retailers of America (FDRA), are calling on Ambassador Greer to ensure new tariffs are not added on top of already steep footwear duties. As trade deals near finalisation, the FDRA urges Ambassador Greer not to stack new tariffs on already high footwear duties, which hit working-class families hardest. With children's shoes already taxed up to 48 per cent, the industry said that added tariffsâ€'like the 20 per cent on Vietnamese goodsâ€'could worsen inflation and threaten footwear jobs. The industry stressed that current tariff rates—averaging 12 per cent and reaching as high as 48 per cent for children ' s shoes — already burden working-class US families disproportionately. With President Trump recently confirming a new 20 per cent tariff on Vietnamese-made goods, industry representatives argue that this effectively doubles the cost for many footwear imports already taxed at that level. Children ' s shoes, they emphasise, are rarely produced in the US and are essential for education, sports, and child health — especially ahead of the back-to-school shopping rush. The letter, which follows an earlier appeal to President Trump in May, supports his stance that tariffs should not aim to revive domestic sneaker or T-shirt production. Signatories also highlighted the sector's limited strategic relevance to national security and pointed out that footwear companies are already set to pay over $5 billion in duties this year alone. Industry groups are urging the administration to exempt footwear from additional reciprocal tariffs or provide credits against current Most Favoured Nation (MFN) rates. Without action, they said, consumers could face rising prices and job losses across the footwear supply chain. Fibre2Fashion News Desk (HU)
Yahoo
10-07-2025
- Business
- Yahoo
Bessent Defends Duties, Says Fashion May Take Margin Hits
Treasury Secretary Scott Bessent hit out at the nation's footwear and apparel sector for questioning the administration's trade strategy and its impact on business. During a segment on CNBC on Thursday, Bessent, in an attempt to defend the recent trade deal with Vietnam that will result in a new, 20-percent duty rate, said that U.S. businesses have already adjusted to the 10-percent universal baseline tariff levied by Trump in April. 'We'll see what happens with the additional 10 [percent] but thus far, we haven't seen any inflation from tariffs,' he said. More from Sourcing Journal Trump Releases Flurry of Tariff Announcements for Bangladesh, Cambodia and More Trump Administration Pushes Out Pause on 'Liberation Day' Duties Trump Announces 'Great Deal of Cooperation' With Vietnam, Lowering Tariff Rate But the Footwear Distributors and Retailers of America's (FDRA) believes that the double-digit duty hike will bring higher costs for both shoppers and U.S. brands and retailers sourcing in Vietnam—a slap in the face after the president urged companies for years to diversify away from China. When asked about the comments, Bessent suggested that Vietnam's manufacturers should bear the brunt of the added duties if they 'want to keep market share.' He accused the country of perpetuating rampant transshipment, or allowing China-made goods to circumvent trade laws and make their way into the U.S. market illicitly—a practice which will now result in a 40-percent punitive duty. He also suggested that maybe American brands and retailers should simply accept any hit to their margins the tariffs might cause rather than raise prices for consumers. 'I think many of the apparel companies, their margins became abnormally high during Covid,' he said. 'So maybe one thought is we'll see a normalization there.' The secretary vehemently denied that added duties result in inflation, saying that consumers 'could get a one-time price bump, but in terms of a generalized economic inflation, I don't think that tariffs caused that.' FDRA president and CEO Matt Priest took issue with many of the secretary's comments, saying that if consumers haven't felt the impacts of inflation yet, they're sure to in the coming months as the impacts of the duties play out. 'Inflation is coming. The main brands sourcing out of Vietnam have all said publicly they're raising prices because of the tariffs,' he said. 'The administration came into office declaring that prices would go down on January 20, just by the mere fact that the President was re-elected,' Priest added. 'And we pushed back on that because we knew that the policy implications of higher tariffs meant that there would be inflationary activity in the supply chain, which would impact our consumers, and that would be the antithesis of the commitment made by the president and his team.' Priest also took umbrage with the administration's accusations regarding unbridled transshipment, saying that the 'illegal' and 'fraudulent' practice is different than Vietnamese producers utilizing China-originating materials and components to create products for the American market. The Asian footwear and apparel supply chains are deeply integrated, and many companies are reliant on China for certain inputs. 'And in fact, if you look at domestic production for in the United States, guess where they get their materials? China,' Priest said. 'They're really barking up a tree that I think is going to make it difficult for shoe companies to continue to source in Vietnam,' and that could play right into China's hands. If content rules for Vietnam-made products are too 'onerous,' companies could simply opt to keep their supply chains in China—especially if they'd pay high duties in either country. Vietnam's producers are also unlikely to bear the brunt of the tariff increases, and with the duty rate rising above 10 percent (a rate FDRA hoped wouldn't be surpassed) it will be harder to spread out the added costs. 'And as you get north of 10 [percent], that impact will be more difficult' to parse, he said. 'I think a larger share of that shifts to the consumer away from the producer because [producers] can only deal with it for so long and so much before they decide, 'I can't even afford to do this.'' U.S. footwear firms are stuck between a rock and a hard place, Priest said, because they don't yet have a full picture of the trade landscape. 'We don't know where Cambodia will land, where Indonesia will land, and so if you're a sourcing manager for a company, your matrix is all messed up.' Priest said the trade association had spoken with a number of its members over the past 24 hours and encouraged them not to make any decisions about sourcing until a more detailed plan is released by the administration. In addition to fretting over their supply chains, footwear brands are contending with a consumer that is 'pretty spooked' by the economic environment. 'Right now, sales are down, foot traffic's down. Consumers are really kind of clenching and holding onto their pocketbooks,' he said. As these firms look for a path forward that preserves their margins amid tariff increases, they're not eager to go down a road that might alienate shoppers further. 'We know that when you increase prices, that will drive down even more consumer activity, so our companies are trying to deal with as best they can,' Priest said. 'As we head into back to school in full force in July and early August, and then as we head into the holidays, we'll see price increases. It won't be on everything; it won't be on every SKU and every type of shoe, but I think it will be broad-based enough for the consumer will feel it.'
Yahoo
01-07-2025
- Business
- Yahoo
FDRA appoints new leadership to drive footwear industry progress
FDRA governs over 500 companies and brands globally, representing 95% of the US footwear market share. BBC International's Josue Solano is appointed as the chairman of the board, with Dan Friedman from Caleres taking on the vice chairman role, and Lisa Tucker from Shoe Show assuming the position of treasurer. Josue Solano has more than 20 years of experience in the footwear industry and knowledge in global sourcing, supply chain management, and corporate strategy. Under this role, Solano will offer strategic guidance and vision for FDRA, an organisation that represents more than 97% of the footwear industry, including retailers, brands, and manufacturers. 'From tackling tariff challenges to enhancing industry collaboration, I look forward to working on the issues that matter most to our members,' Josue Solano stated. The transition to new leadership is facilitated by existing board members and Jennifer Bendall, Nike's outgoing chair and current vice president of government and public affairs. The board is further strengthened by new appointees such as Sara Hoverstock from Crocs, Jonathan Frankel from Aldo, Gautham Rao from Timberland, and Todd Krinsky from Reebok. The appointments come at a challenging time for the footwear sector with FDRA's second quarter 2025 Shoe Executive Business Survey indicating the growing concerns among leaders regarding declining consumer demand, escalating costs, and the erratic nature of US tariff policies. Survey findings reveal that over six in ten respondents reported a drop in sales compared to six months prior and 49% anticipate lower comparable store sales in the next six months. Additionally, 82% of the respondents predict a weakening or very weak US economy during that period. An 'overwhelming' 88% expect diminished consumer spending on footwear. Another critical issue highlighted by the survey is the surge in landed costs for brands and retailers with 94% expecting an increase in footwear costs during the year's latter half. About 60% of the respondents predicted these costs could rise by double digits. 'This quarter's survey is a flashing red light for the industry,' said FDRA president and CEO Matt Priest. 'Footwear companies are facing a perfect storm—consumers are pulling back, costs are rising fast, and trade policy from Washington continues to inject unnecessary volatility into an already fragile marketplace. President Trump and Congress must remember tariffs are an additional tax on already burdened American families and American industry,' he added. "FDRA appoints new leadership to drive footwear industry progress" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
24-06-2025
- Business
- Yahoo
With Consumer Confidence Sliding, Could Shoe Sales Slow Sooner Than Later?
Consumers are concerned about tariffs and they are less confident than they were last month — that does not bode well for footwear sales. 'Consumer confidence weakened in June, erasing almost half of May's sharp gains,' Stephanie Guichard, the Conference Board's senior economist, global Indicators, said. 'The decline was broad-based across components, with consumers' assessments of the present situation and their expectations for the future both contributing to the deterioration.' More from WWD Footwear Firms Rejiggering Supply Chains Will See Long-Term Benefits May Swiss Watch Exports Slump After U.S. Tariff-led Surge All Eyes Are on Nike Ahead of Q4 Earnings The Conference Board said on Tuesday that its Consumer Confidence Index fell to 93.0 in June from 98.4 in May. The Present Situation component fell 6.4 points to 129.1. The Expectations Index fell 4.6 points to 69.0, representing a level that was substantially below the threshold of 80 that typically signals that a recession is ahead. 'Consumers were less positive about current business conditions than May. Their appraisal of current job availability weakened for the sixth consecutive month but remained in positive territory, in line with the still-solid labor market,' Guichard said. She noted that the three components of the Expectations Index — business conditions, employment prospects, and future income — all weakened. And consumers were more pessimistic about business conditions and job availability over the next six months, with optimism about future income prospects eroding slightly. The data points also reflected that the retreat in confidence was shared by all age groups, and almost all income groups. It was also shared across all political affiliations, withe the largest decline among Republicans, the Conference Board said. As for write-in responses in June's survey, Guichard said that tariffs 'remained on top of consumers' minds and were frequently associated with concerns about their negative impacts on the economy and prices.' Consumers also cite inflation and high prices as concerns. While dining out was one of the few categories to see spending intentions rise in June, most other categories saw declines. While shoe prices at retail slid 1.6 percent in June from a year ago in May, that's already changing. Gary Raines, chief economist at the Footwear Distributors and Retailers of America (FDRA), told Footwear News that there was mounting evidence of surging average duties per pair on footwear imports. 'These higher duties soon may push the average landed cost of footwear imports sharply higher, which in turn may pressure retail footwear prices to climb later this year,' FDRA's Raines said. Nike last month said it was raising some retail prices at its U.S. stores starting June 1, but not for any goods priced at $100 or less. The sports apparel and footwear brand also won't be raising prices for any kids's footwear or apparel items. In addition, there are no scheduled increases for any Jordan product. The average price uptick for apparel and equipment is between $2 and $10, while footwear currently between $100 and $150 will see increases up to $5 and those starting at $150 and higher will see increases up to $10, a source told FN. Other footwear firms have also tinkered with price increases. Steve Madden Ltd. has also increased prices for select shoe styles, and the firm is also working to factories and suppliers on price concessions so it can keep increases to the consumer within a certain range. And over at Crocs Inc., CEO Andrew Rees said the company is being 'super strategic' on pricing, with some targeted increases. He also expects the industry 'to go up in terms of price' due to tariffs. The next big shopping event for footwear will be back-to-school, which starts as early as July. Hibbett is ready with a new website and app dedicated to seeking kids products, and its set up for shoppers to find the lastest fashion and footwear styles in an easy-to-navigate format. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
