22 May 2025
Outdoor footwear brand Keen Inc. has officially announced that for the remainder of 2025, the company will not implement any tariff-related price increases. In a letter to partners, company founder and CEO Rory Fuerst stated: “We understand that in the current economic environment, this decision is not easy – but it is the right path.”
He further explained: “We feel it is necessary to support our retail partners and consumers during this period of uncertainty.” He emphasized: “By maintaining price stability, we expect to maintain customer relationships and continue to deliver the brand value and quality that consumers expect.” The family-owned business reiterated its core belief: “In difficult times, you should stand up for the important people.” Thanks to its diversified supply chain and forward-thinking planning, Keen stated: “We are fortunate to be able to absorb the cost impact ourselves, avoiding passing on costs to consumers.”
The Keen brand rose to prominence with the launch of its Newport hybrid sandal in 2003, a cleverly designed sandal that combined the breathability of a water sandal with the protection of outdoor footwear. Since 2018, the brand has completely stopped using PFAS chemicals, and last year launched its first lifestyle sneaker, the KS86, inspired by trail running shoes. During the same period, the company also released OSHA-compliant work shoes, whose unique basketball shoe styling subverted the traditional appearance of safety shoes.
Facing recent tariff increases, Keen is not the only footwear company focused on the retail landscape. Earlier this year, Twisted X CEO Prasad Reddy also pledged not to raise product prices, despite his main product, boots, being produced in China. Reddy revealed to FN that his wholesale business largely relies on independent retailers, and price increases would severely impact these retailers. Although rising costs will affect profits, he stated: “The company is more capable of absorbing this increased cost compared to end consumers or retailers.”
Many well-known footwear companies have hinted at possible product price increases. Steve Madden CEO Edward Rosenfeld stated in February that as production gradually shifts from China, some products may see price increases this fall. Crocs has adopted a cautious wait-and-see approach, and although it has already set aside 10% of the cost for China tariffs in its annual financial report, it still reserves the possibility of long-term price increases. Columbia has also pre-absorbed a 10% base increase, but will continue to observe industry trends to adjust its strategy in the second half of the year.
In reality, footwear manufacturers are facing a dilemma, especially publicly listed companies. Regardless of the strategy adopted, they seem to be in a difficult position: on the one hand, they need to fulfill their fiduciary duty to shareholders (the core of which is to ensure quarterly profits), which usually requires price increases to maintain target gross margins; but on the other hand, price increases may lead to reduced wholesale orders, and reduced consumer spending will affect overall sales. If they fail to meet Wall Street’s expectations, company stock prices may face downward pressure.
For the footwear industry, tariffs have become a major issue in 2025. Although tariff increases were expected, no one anticipated that President Trump would implement reciprocal tariff surges on April 2nd – with some Chinese import tariffs seeing double-digit increases as high as 145%, forcing many companies to re-evaluate their cost structures for survival. Although there is currently a 90-day grace period (excluding Chinese goods), the policy after the grace period ends on July 9th remains unclear. Last week, the Footwear Distributors and Retailers of America (FDRA), along with more than 80 mainstream footwear companies, sent a letter to Trump, calling for footwear to be excluded from the reciprocal tariff plan.
Even if the United States can reach new trade agreements with other countries, it may not be able to catch up with the holiday season’s order shipping cycle – most orders typically ship within the next few weeks (August being the peak), to ensure brands and retailers receive goods on time. This time lag forces companies to make critical decisions in an unclear policy environment.
Although the specific impact on the footwear industry is currently unclear, the outlook is not optimistic. VF Corporation, the parent company of Vans and Timberland, recently confirmed to FN that it will lay off an additional 400 employees across its brands and in the Americas, Europe, and Asia regions. These layoffs are in addition to the job cuts made in January due to global functional restructuring. Adidas CEO Bjørn Gulden also confirmed in March that 500 positions would be cut at its Herzogenaurach headquarters in Germany.
Data released by the U.S. Department of Labor on Friday showed that non-farm payrolls increased by 177,000 in April, with the unemployment rate remaining unchanged at 4.2%. Although the overall job market has shown some resilience to trade policy fluctuations, the retail sector may be an exception. Government retail employment data showed a decrease of 1,800 jobs in April, a sharp contrast to the 21,700 jobs added in March. May’s data may reveal the direction of retail employment trends. In addition, new data from executive training firm Challenger, Gray & Christmas shows that from January to April this year, the retail industry has laid off more than 64,000 people, a surge of nearly 300% compared to the number of layoffs announced in the same period in 2024. As commodity prices rise and consumers reduce non-essential spending, the retail industry may face more layoffs. Undoubtedly, tariff policies are having a more direct and tangible impact on current footwear, apparel, and related businesses.
Source: 环球鞋网
使用條款 | 隱私政策 | APLF 可持續發展
