By Elias Schisgall

Footwear stocks rose after the Supreme Court ruled that President Trump's global tariffs were unlawful, bringing relief to a sector that had been hit hard by import taxes on China and Southeast Asia.

Crocs was up 2.6%, Deckers Outdoor rose 1.8%, On Holdings gained 1.3%, and Birkenstock Holding was up 1.9%.

After Trump put tariffs on China in February 2025, many footwear companies shifted some of their supply chains out of the country and into Southeast Asia.

Trump then levied a 46% tariff on Vietnam, a 49% tariff on Cambodia and a 32% tariff on Indonesia as part of his sweeping "Liberation Day" tariffs in April.

The tariffs triggered steep drops in many footwear and apparel stocks, and prompted some companies to modify their approach to guidance for the rest of the year. Some companies were expected to raise prices as they contended with inflation, tariffs and cautious consumer sentiment.

Crocs in May withdrew its guidance and said it would raise prices due to uncertainty around the tariffs. Deckers declined to give full-year guidance in May, citing the uncertain macroeconomic environment.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

February 20, 2026 11:03 ET (16:03 GMT)

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