Three of the largest footwear manufacturers in China and Southeast Asia took it on the chin in 2025 as the threat, and then the implementation of Trump tariffs on countries shipping goods into the U.S. created a year of uncertainty and a high level of anxiety when it came to pricing, timing of shipments and planning for the future.

Feng Tay Enterprises, one of the longest-tenured producers of Nike footwear, reported that manufacturing revenues declined 4.5 percent for the full year with only two months of positive result;  a double-digit gain in February 2025 driven by the rush to get goods out the door before the tariffs hit in April; and a small increase in April as brands were provided a reprieve, of sorts, with delayed tariffs for China and other countries.

Yue Yuen Industrial (Holdings) Limited’s manufacturing business, which is responsible for footwear production for a large portion of major outdoor and athletic brands in the U.S. and Europe, finished 2025 on a down note but managed to eke out a lethargic 0.5 percent year-over-year improvement in Footwear Manufacturing revenues for the full year.

Stella International Holdings Limited (Group), the China-based manufacturer of footwear for Nike, Saucony, Under Armour, Merrell, Timberland, and Ugg, among others, reported that the Group’s unaudited consolidated revenue increased 1.2 percent for the 2025 full-year period.

A Slow Start To 2026
It appears that the year has not produced enough new energy to offset recent declines or flat business in 2025 for at least two of the footwear manufacturers (Stella has not reported by press time) that started 2026 in a similar manner to how 2025 ended.

While 2025 was seen as a year to get creative with pricing to offset at least some of President Trump’s tariff impact, it has become clear after trade events and earnings calls that many footwear executives see 2026 as the year to raise prices in a broader effort to maintain margins. The impact will be closely watched and could further weaken 2026 footwear shipments.

Feng Tay Enterprises
Feng Tay Enterprises reported that manufacturing revenues declined 1.8 percent in January 2026, continuing the small decline in December. Still, it was a considerable moderation from the 6.2 percent decline posted in the year-ago January 2025. Revenues totaled NT$6.83 billion for January 2026.

The company reported unaudited consolidated operating income of NT$488 million and consolidated net profit before tax of NT$537 million for January 2026. Net profit attributable to the owners of the parent totaled NT$397 million. Earnings per share were NT$0.40.

Feng Tay Enterprises reports in New Taiwan dollar (NT$) currency.

Yue Yuen Manufacturing
Yue Yuen Industrial (Holdings) Limited’s manufacturing business saw a small increase in January 2026, rising 0.6 percent after a 3.7 percent decline in footwear shipment value in December 2025. The January 2026 growth result was roughly half the 1.1 percent seen in January 2025 to start last year on a more positive note.

Total net consolidated operating revenue generated in January 2026 by Yue Yuen Industrial (Holdings) Limited, including the footwear manufacturing business and retail stores throughout China, declined 12.5 percent y/y to $704.6 million, nearly double the 5.8 percent decline posted for the year.

As if to provide a real-life example of the conversation about a weakening Chinese retail sector, Yue Yuen’s Pou Sheng China retail revenues fell 32.5 percent in January 2026, nearly triple the percentage decline reported in December 2025, and a far sharper negative trend line than the 7.2 percent y/y decline for full-year 2025.

Yue Yuen and its footwear manufacturing business trade and report in U.S. dollars ($) currency.

 Image courtesy Feng Tay Enterprises