10 Footwear Apparel Stocks Affected By China Tariffs

2. Skechers U.S.A. Inc. (NYSE:SKX)

Skechers U.S.A. Inc. is a footwear designer, manufacturer, seller, and marketer that operates through two segments; direct-to-consumer and wholesale. The company supplies its products through big box club stores, company-owned retail stores, factory outlets, websites and mobile apps, department stores, and other platforms. The company sources 40% of its products from China.

The stock has already run up 10.66% this year, despite losing 7.5% in a single day when the tariffs were announced. Despite announcing record 2024 revenue yesterday, the company lagged estimates. There’s good reason to be optimistic about the company though despite its exposure to China.

According to Jay Sole, who is an analyst at UBS, the company is on track to become the third-largest footwear maker in the world. It could deliver $10 billion in revenue by the end of next year. Even though Q4 earnings have disappointed with the stock plunging 12% after hours, it doesn’t negate the long-term bull thesis and could be seen as a buying opportunity.