• Loading stock data...
Wednesday, October 8, 2025

Skechers Is Latest Company to Pull Guidance, Citing U.S. Tariffs

Despite reporting positive first-quarter earnings, Skechers pulled its financial guidance for the full year due to “macroeconomic uncertainty from global trade policies.”

Dec 27, 2023; Oklahoma City, Oklahoma, USA; A close up view of New York Knicks forward Julius Randle (30) shoes during the second half against the Oklahoma City Thunder at Paycom Center.
Alonzo Adams-Imagn Images

Skechers is the latest company to pull full-year guidance because of broad economic uncertainty stemming from tariff policies.

In its first-quarter earnings announcement Thursday, the third-largest footwear company reported record quarterly sales of $2.41 billion, 7% higher than the year-ago period, but 16% lower sales in China.

More importantly, the company said that “due to macroeconomic uncertainty from global trade policies” it wasn’t providing financial guidance for the full year—which most companies do in their quarterly reports—and is withdrawing the guidance it gave for the previous quarter on Feb. 6. 

Skechers joins a handful of other big names that have either pulled or lowered their forward-looking guidance. On April 9, ahead of an investor event, Walmart said it’s widening its first-quarter operating income growth range amid tariff uncertainty. (It will report Q1 earnings on May 15.) Delta pulled its financial forecast for 2025 and estimated profit for the current quarter to be below expectations, blaming stalled travel demand as sweeping U.S. tariffs fuel economic uncertainty. PepsiCo also lowered its outlook, citing a pullback in consumer spending and the impact from higher global tariffs.

Shares of apparel and footwear companies—including sportswear retailers like Nike and Under Armour—have taken a beating since President Donald Trump first announced tariffs on imports from dozens of countries on April 2. Vietnam, which was set to be hit with a 46% tariff, has become a dominant sourcing country for Nike, Adidas, On, and others, especially after Trump imposed hefty tariffs on Chinese imports during his first presidential term. On April 9 Trump announced a 90-day pause on all tariffs except for imports from China.

Most Skechers footwear is manufactured in China and Vietnam. Tariffs on goods imported from China are currently more than 100%.

Skechers moved to bring more inventory into the U.S. before the most recent tariff announcements, which is why the footwear brand noted it expects to start seeing tariff impact toward the end of the second quarter and “acute” impact in the third quarter. 

But Wall Street analysts think things will turn out fine for Skechers, despite the tariff fallout. Here’s why: It generates almost two-thirds (about 66%) of revenues from outside the U.S.

On its earnings call, Skechers said its international business is “much less to minimally” impacted by tariffs and noted the vast majority of its markets performed well in the quarter and should trend similarly going forward. Wells Fargo analysts said in a note following the call that executives said demand was “extremely robust” and “almost hard to catch.” 

Companies typically respond to tariffs by passing the increased cost to consumers, absorbing it, or negotiating with their suppliers. Skechers management said they’re not eager to raise prices, Morgan Stanley analysts wrote in a note that there’s opportunity to “spread price increases across the global footprint given Skechers’ uniquely high international revenue exposure.”

Although some analysts, including UBS, lowered their earnings estimates for 2025 and 2026, they say Skechers is well-equipped to weather a trade war. It’s able to diversify production “away from the highest cost countries over time as well as employ a host of other cost mitigation strategies,” UBS analysts wrote in a note. “We believe Skechers’ scale and diverse business mix across categories, geographies, and channels will help it adapt to the current environment better than its peers will, similar to what happened during the COVID era.”

On Thursday Adidas reported better-than-expected preliminary results for the first quarter, selling all its Yeezy inventory at the end of 2024. Adidas will publish full results April 29, at which point it may provide more insight on trade issues. 

Shares of Skechers have dropped 16% since April 2, when Trump initially announced his broad set of tariffs. The S&P 500 index is down 2.5% over the same period.

Morgan Stanley analysts said the stock’s underperformance since then—and its 7% drop after market close Thursday following its earnings release—“is overdone considering its relatively favorable tariff, recession, and sportswear market positioning.” 

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

‘Absolutely Ridiculous’: Trump Blasts NFL Over Bad Bunny Choice

The president predictably panned the NFL’s selection of the Puerto Rican superstar.
Ballers in Philadelphia
exclusive

Backer of SlamBall, Ballers Armed With $150M for New Fund

The fund will offer sports and entertainment companies deals that don’t involve equity.

Bad Bunny, U.S. Officials Trade Barbs Over Super Bowl Halftime Show

DHS Secretary Noem attacks the choice, while Bad Bunny responds on SNL.

FIFA Won’t Move 2026 World Cup Matches Despite Trump Remarks

The organization’s VP pushes back on recent comments from Trump.

Featured Today

Paul Cartier

Sports Organists Are Still Thriving in the Era of Raucous Arena Music

“When they walk out and they see a real organ guy, it’s like, ‘Wow.’”
Sep 27, 2025; Milwaukee, Wisconsin, USA; Milwaukee Brewers center fielder Jackson Chourio (11) rounds the bases after hitting a home run during the sixth inning against the Cincinnati Reds at American Family Field.
October 4, 2025

Milwaukee Moneyball: Brewers Are Beating MLB’s Deeper Pockets

Milwaukee is holding its own against big-budget competitors.
Kōloa Rum Company Rum Rusher
September 27, 2025

Panthers Bubbly, Jets Wine, Manning Whiskey: The Sports Booze Boom

A sommelier dives into the sports booze trend—and tries Jets wine.
Nov 17, 2024; Pittsburgh, Pennsylvania, USA; Pittsburgh Steelers fans wave Terrible Towels against the Baltimore Ravens during the fourth quarter at Acrisure Stadium
September 26, 2025

Steelers’ Irish Roots Are Deeper Than NFL Dublin Game

The Steelers have history and the foundation for a future in Ireland.
Limited Hype
July 27, 2025

Sneaker Reselling Was Once Easy Money. Success Is Now Complicated

Vendors need to evolve what they’re selling and how they do it.
August 12, 2025

‘We Have Pricing Power’: On Smashes Earnings Expectations

U.S. tariffs haven’t cooled demand for On’s high-priced sneakers and apparel.
Sponsored

How Jenny Just Is Shaping the Future of Sports Ownership

Jenny Just on bringing her investment experience to sports ownership.
Happy Gilmore 2 hockey stick putter
July 21, 2025

Callaway’s $500 ‘Happy Gilmore’ Putter Booming on Resale Market

Callaway released a limited-edition Odyssey-branded hockey stick putter.
A Lululemon store at Freehold Raceway Mall in Freehold Township, New Jersey on Nov. 30, 2023
July 2, 2025

Sportswear Stocks Rise as Trump Touts Vietnam Trade Deal

Tariffs on Vietnam imports will be 20%, down from a prior threat of 46%.
From vintage to unique collaborations, various Nike and Jordan shoes are displayed on a wall at Saved Soles inside West Ridge Mall.
June 26, 2025

Nike Stumbles Less Than Expected, Giving Wall Street Hope

The sports apparel and footwear giant beats Wall Street expectations.
Jun 20, 2024; Eugene, OR, USA; Detailed view of Nike Alphafly 3 racing flat at the Nike by Eugene store.
June 25, 2025

Investors Hunt for Signs Nike Has Regained Its Footing

Nike’s fundamentals are “still challenged.”