Nike, Other Footwear Makers Bounce Back After Trump Pauses Some Tariffs

By Sabela Ojea

Shares of Nike, On Holding, Skechers, Deckers Outdoor and Foot Locker on Wednesday jumped after President Trump authorized a 90-day pause on certain tariffs to most countries, excluding China.

Nike shares traded around 11% higher, with shares of Hoka owner Deckers up 13% and Skechers stock rising around 10% shortly after Trump made the announcement on a post on his Truth Social platform. Shares of on Holding and sports retailer Foot Locker led the gains, rising 15% and 16%, respectively.

Footwear companies' manufacturing operations are heavily dependent on Vietnam, among other Asian countries, and their shares underwent a major selloff after Trump disclosed a new round of tariffs last week that targeted their key suppliers.

For sneaker giant Nike, supply-chain partners in Vietnam and Indonesia make 61% of the sneaker company's manufactured goods. China represents 34% of its manufacturing. On Holding has 90% of its footwear made in Vietnam, according to William Blair.

Analysts had expected significant price increases from retail companies to offset higher costs related to tariffs, coming at a time marked by weakening consumer sentiment amid inflation and unemployment fears.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix