Shoe prices in the U.S. began rising in July after months of declines, with a year-over-year increase of 0.9 percent according to Footwear Distributors and Retailers of America (FDRA) data. This reversal follows five consecutive months of falling prices, with men’s footwear seeing the largest increase at 1.2 percent — the highest in nine months. Women’s and children’s footwear also reversed declines, rising 0.9 percent and 0.2 percent, respectively. The price increases are linked to broader inflation, which rose 2.7 percent year-over-year in July, and higher import duties on footwear from countries like Vietnam, Indonesia, and China. While some brands like Crocs Inc., Rocky Brands, and Steve Madden Ltd. have implemented selective price hikes, Nike maintained stable pricing for its Jordan and kids' lines. Parents are concerned about rising costs, with a study by AlixPartners and FDRA suggesting they may trade down or reduce purchases. Tariff policies, including a proposed 20 percent duty on Vietnam and 19 percent on Indonesia, and a 30 percent duty on China (set to expire in November), are contributing to increased costs. Despite these pressures, FDRA notes that U.S. footwear imports from China are expected to drop below 50 percent of total volume due to long-term production diversification.

Rocky Brands, Inc. (RCKY) saw a 28.37% surge in after-hours trading following its second-quarter 2025 results, which exceeded analyst expectations. The company reported net sales of $105.6 million, a 7.5% increase, and net income of $3.6 million, a 390.3% rise compared to the same period last year. CEO Jason Brooks attributed the strong performance to effective execution, brand strength, and diversified manufacturing.

Rocky Brands director Dwight Smith purchased 200 shares of the company at $23.4566 per share, totaling $4,691. The transaction reflects confidence in Rocky Brands, which reported Q1 2025 earnings exceeding expectations, despite a revenue miss. The company is shifting production away from China to mitigate tariffs and reaffirmed 2025 guidance.

Honeywell completed the sale of its Personal Protective Equipment (PPE) business to Protective Industrial Products (PIP) for $1.325 billion in an all-cash transaction. PIP, a global supplier and portfolio company of Odyssey Investment Partners, will now focus on growing the PPE business. This follows Honeywell's 2021 exit from the PPE space via the sale of its Lifestyle and Performance Footwear Business to Rocky Brands.

The footwear sector outperformed in May 2025 as consumer confidence rose after five months of declines, driven by delayed U.S. tariffs on EU imports and strong stock performance. Key companies like Deckers Outdoor, Designer Brands, and Nike led gains, while the Skechers U.S.A. buyout highlighted M&A activity in the sector.