KeyBanc: Tariff-related price rises raising concerns about footwear affordability

Published 15/07/2025, 16:42
© Reuters.

Investing.com -- Tariff-driven price increases are beginning to weigh on consumer sentiment around footwear, according to KeyBanc Capital Markets’ second-quarter survey. 

While overall spending intentions improved, concerns over affordability are growing, particularly among younger and higher-income consumers, according to the bank.

“80% of survey respondents noted that they have observed price increases due to tariffs,” KeyBanc wrote. Yet, “only 19% reported they will keep their spending the same regardless of higher prices,” suggesting price sensitivity is likely to influence future purchase behavior.

Footwear purchase intent is expected to remain strong heading into the back-to-school season, with 78% of respondents planning to buy new shoes within the next three months. 

Encouragingly, KeyBanc noted that 40% said they intend to increase their overall footwear spending, up 10 percentage points from the first quarter. Nike (NYSE:NKE) remained the most purchased and favorite brand, while On, HOKA, and Crocs (NASDAQ:CROX) ranked among the top six trending brands.

KeyBanc added that premium brands appear better positioned in the current environment.

“We see continued resilience of the higher income cohort affecting ONON positively,” KeyBanc noted, adding that On has seen “no demand elasticity from price increases” and continues with “$10+ increases across franchises.”

Still, signs of a value-oriented shift are emerging. “81% of respondents indicated looking for some level of value-oriented products due to tariffs,” the report said, hinting at a possible trade down if affordability remains an issue.

The running category showed mixed results, but KeyBanc remains upbeat about innovation-led brands. 

“Winners in the category will be those that continue to innovate and bring newness to product pipelines,” analysts wrote, as the market grows increasingly competitive.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.