On Holding Rated Top Footwear Stock After IEEPA Curbs Hit 20% of Imports
On Holding has been named the best footwear stock pick following a US IEEPA ruling restricting 20% of annual Chinese footwear imports, potentially boosting domestic suppliers. The curbs target factories supplying $5 billion in US sales, narrowing competition.
1. IEEPA Ruling Effects
The US administration invoked the International Emergency Economic Powers Act to impose import restrictions on footwear produced by certain foreign entities. These curbs cover roughly 20% of annual Chinese footwear imports into the US, equating to about $5 billion in sales.
2. Impact on Competitors
Major Chinese and other foreign manufacturers account for the restricted volumes, reducing supply of popular athletic and lifestyle shoes. The ruling is expected to disrupt established import channels and elevate sourcing costs for US retailers.
3. On Holding’s Growth Opportunity
On Holding generates approximately 30% of its revenue from the US market and plans a 15% production capacity increase through 2026. The company aims to capture displaced demand by accelerating new product launches and expanding distribution partnerships.