Tariffs have dominated the apparel and footwear narrative in 2025, triggering steep market selloffs, valuation compression, and lowered earnings guidance across the industry. CFRA’s latest thematic research dives into the true financial impact of the April 2 "Liberation Day" tariffs—now partially walked back—and what remains priced into the sector.
The report reveals which companies are most exposed to persistent 10%–30% tariffs across Asia and identifies retailers that may be undervalued despite strong balance sheets, growing margins, and share buybacks. From Nike and lululemon to Abercrombie & Fitch and Deckers, we dissect brand momentum, tariff mitigation strategies, and valuation vs. historical averages.
In this in-depth analysis, CFRA’s Zachary Warring outlines why recent volatility may present compelling long-term buying opportunities, particularly for companies catering to higher-income consumers or undergoing successful brand reinventions. With geopolitical pressure easing and inflation concerns stabilizing, now may be the time to re-evaluate the sector.
What You Will Learn
- How tariff policies are impacting 2025 EPS estimates and forward P/E valuations.
- Which countries face the steepest tariff rates—and how that affects global sourcing.
- Stock-specific insights on ANF, LULU, GAP, PVH, and DECK.
- Where CFRA sees recovery potential and signs of investor overreaction.
- The geopolitical outlook and why some companies may thrive despite headwinds.
Discover which apparel and footwear companies are best positioned to weather the 2025 tariff storm. Get exclusive access to the full thematic research report from CFRA.