Momma needs a new pair of shoes, but they will cost more.

Momma needs a new pair of shoes, but they will probably cost a lot more.

Looking at all the prices of the stocks of major shoe manufacturers like Nike, Puma, Adidas, Deckers, Crox, UnderArmour, On Holding. Add in Lulu and Footlocker, you are seeing big price declines.

All are exposed to the tariffs with manufacturing in places like China, and Vietnam, countries that have some of the highest tariffs. Below is a snapshot of their price action:

• Nike – $57.75 ▼ $7.21 / -11.10%

• Adidas – $196.20 ▼ $22.90 / -10.45%

• Puma – $2.00 ▼ $0.20 / -9.09%

• Skechers – $48.61 ▼ $10.42 / -17.65%

• Deckers – $101.23 ▼ $16.75 / -14.20%

• Crocs – $95.27 ▼ $16.27 / -14.59%

• Foot Locker – $12.55 ▼ $2.17 / -14.74%

• Lululemon – $250.41 ▼ $32.34 / -11.44%

• Under Armour – $5.09 ▼ $1.21 / -19.21%

• On Holding – -$ 38.79 -$6.15 / -13.60%

The question for each is who eats the cost of the tariffs? If it is the consumer, the companies demand will likely move lower as the prices will price out many. If the company does, it takes straight from the bottom lines and profit margins. There is no good result.

Another ancillary issue revolves around theft. In a recent article on Business Insider, it was reported that Burlington Northern Santa Fe (BNSF), owned by Warren Buffett’s Berkshire Hathaway, has experienced a surge in train robberies since 2023, particularly in the southwestern United States. Thieves, reportedly linked to the Sinaloa Cartel, have stolen over $4 million worth of merchandise, including high-end sneakers and electronics. Their methods involve identifying high-security containers on eastbound trains, breaking into them using tools like saws and bolt cutters, and forcing emergency stops by cutting brake lines. Recovered stolen goods include unreleased Nike sneakers and gaming headsets. Despite arrests and collaboration with law enforcement, these thefts persist, contributing to significant financial losses in the rail industry.

This article was written by Greg Michalowski at www.forexlive.com.