Athletic shoe companies appear to have an advantage ovꦅer other footwear manufacturers in the tariff era, acc꧅ording to Citi Research analysts.

Companies making retail sneakers and hiking boots have relatively limited exposure to China, whose exports currently are subject to a 145% import tax, Citi wrote in a research note Monday. The analysts said 澳洲幸运5官方开奖结果体彩网:tariffs on other countries seꦬem “digestible”—assuming that the tax rate remains in the neighborhood of 10%—for ma🧔ny such companies.

Still, Citi lowered its price targets for all the athletic apparel companies—citing weakening economic conditions—andꦗ distinguished between b﷽rands with and without the ability to raise prices.

Citi's Analysis of Athletic Footwear Makers Amid Tariffs

Here is how they see major 澳洲幸运5官方开奖结果体彩网:footwear companies faring:

• On Holding (ONON), a Swiss company 澳洲幸运5官方开奖结果体彩网:selling running, tennis and𓄧 hiking shoes, sources about 90% of its materials in Vietnam, the analysts said. On Holding is also less likely to face a consumer backlash in China than American brands may there, according to Citi, which upgraded its shares to “buy" from “neutral.”
• Amer Sports (AS), the originally Finnish 澳洲幸运5官方开奖结果体彩网:business behind Arc’teryx and Salomon hiking shoes, sources about 20% of U.S. products from China, but should be able to charge customers more for them, the Citi analysts said. They maintained a 澳洲幸运5官方开奖结果体彩网:“buy” rating.
• Deckers Outdoor (DECK), the parent of Hoka and Ugg shoe brands, is “in a solid position to pass-through price to the consumer,” the analysts wrote, maintaining their “buy” rating on the company.
• Lululemon Athletica (LULU), an athletic shoe and attire company, is a Canadian brand, and therefore, should suffer less from anti-American sentiment, the analysts said. But Lululemon may also have 澳洲幸运5官方开奖结果体彩网:a harder time raising prices, according to analysts, who maintained their “neutral” rating.
• Nike (NKE) was struggling with excess inventory 澳洲幸运5官方开奖结果体彩网:before tariffs were announced and its sales may be more vulnerable now that anti-American sentiment is a concern, Citi said. It maintained a “neutral” rating on Nike shares.
• Under Armour (UA, UAA), another U.S. athletic clothing and shoe company, is in the middle of 澳洲幸运5官方开奖结果体彩网:an attempted brand turnaround, and has "limited pricing power," Citi said. Its analysts maintained their “neutral” rating on Under Armour.