What's Happening?
The U.S. footwear industry experienced a decline in sales during the first half of 2025, with overall dollar sales down by 1% and units sold decreasing by 2%, according to a Circana report. Despite this downturn, the average selling price increased by 2% year over year. The decline was primarily driven by fashion and outdoor footwear, with fashion categories such as pumps, high shaft boots, and flats showing some growth. However, sport lifestyle and performance footwear categories saw significant growth across all metrics. Running-inspired shoes led the increase in dollar sales within the sport lifestyle segment, while running and cross-training shoes boosted the performance category. Walking shoes also saw double-digit growth in both dollar and unit sales.
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Why It's Important?
The growth in sport lifestyle and performance footwear indicates a shift in consumer preferences towards athletic and versatile footwear options. This trend is crucial for activewear brands, which face potential challenges from tariffs during the holiday season. Brands like Nike, On, and Hoka are responding to these challenges with strategic price adjustments. The popularity of active footwear among teen shoppers is driving growth for brands like Hoka and On, which have reported double-digit growth in recent quarters. This shift highlights the importance of value and versatility in consumer purchasing decisions, especially as prices rise.
What's Next?
As the back-to-school and holiday seasons approach, rising prices may test consumer spending limits, making value a critical factor in footwear purchases. Brands may continue to adjust pricing strategies to combat tariffs and maintain market share. The trajectory of fast-growing brands like Hoka and On will be closely watched, as their popularity among younger demographics could influence broader market trends.
