The Footwear Distributors and Retailers of America (FDRA) released the results of its Q2 2026 Shoe Executive Business Survey showing that after improving in Q1 to the most upbeat in five quarters, respondents’ six-month outlook for the economy dimmed a bit in Q2 due to mounting concerns among footwear leaders about weakening consumer demand, rising costs, and the ongoing impact of Washington’s unpredictable tariff policies.
Asked about their outlook for the economy over the next six months, 7 percent indicated “Very Weak;” 43 percent, “Weaker,” and 31 percent, “no change” Only 20 percent pointed to a “stronger” outlook over the next six months.
Similar sentiments were given when asked about their outlook for shoe shoppers over the next six months, with 69 percent citing “weaker.”
Most of the respondents say their company sales are higher vs six months ago and should be still higher in six more months, albeit lower shares than noted last quarter. Similarly, most see their planned comp sales rising over the next six and 12 months, but lower shares than in Q1.
Of the footwear leaders surveyed, over three in five say their operating costs are higher from six months ago, a 14-quarter high. Over three in five see their operating costs rising further over the next six months — a 16-quarter high —as none see their landed costs decreasing over the next six months, tying a record low. 
Over half see their landed costs rising as much as 10 percent this year, a record-high share. Reflecting these inflationary pressures, about one in three see their retail price rising as much as 5 percent this year, also a record-high share.
For the 7th straight quarter since the presidential election, government (taxes/duties/regulations) remains respondents’ biggest issue by far over the next six months.
About two in five see their inventories declining from six months ago, echoing findings in FDRA’s latest quarterly inventory report. Similar responses were given when asked about inventory levels over the next six months.
Nearly two in three don’t expect to increase or decrease hiring over the next six months, little changed over recent quarters. The same two in three report having no difficulty finding workers to hire.
Charts courtesy FDRA
