Best footwear stock to buy after IEEPA ruling

Investing.com

Sat, February 21, 2026 at 11:18 PM GMT+9 2 min read

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Investing.com – The U.S. Supreme Court’s decision to strike down tariffs imposed under the International Emergency Economic Powers Act (IEEPA) may offer only limited relief for softlines and footwear stocks, but Evercore ISI says one company could stand out as a relative beneficiary.

According to Evercore, apparel and footwear brands should see some near-term support from the ruling, though the broader impact is likely to be modest as the White House moves quickly to replace most tariffs using alternative legal tools. The firm’s policy team expects roughly 80%–90% of existing tariffs to be replicated under other authorities, limiting the upside for the sector.

The analysts added that many global manufacturers previously absorbed part of the tariff burden to keep prices stable for U.S. consumers, meaning factories could now push to renegotiate pricing if companies see any cost relief. As a result, Evercore expects the net benefit for most softlines companies to remain minimal.

Importantly, the ruling does not change the administration’s stance on the de minimis exemption, a key issue for athleisure brands. Evercore said Lululemon Athletica Inc (NASDAQ:LULU) and similar companies, which were heavy users of the exemption, are unlikely to see meaningful relief, while Tapestry had less exposure.

ONON seen as a potential exception

Among footwear names, Evercore highlighted ONON as a potential outlier. The firm noted that, based on prior discussions with management, ONON did not rely heavily on factories to offset tariff costs. That approach could reduce the risk of suppliers demanding concessions if tariffs are adjusted, potentially allowing the company to retain more of any near-term margin benefit.

Refunds tied to previously paid tariffs remain uncertain and could take years to resolve through lower courts, Evercore added, leaving the sector’s outlook dependent on how quickly new tariffs are introduced.

Overall, while the ruling initially lifted sentiment across softlines stocks, Evercore cautioned that policy developments remain fluid, suggesting investors should focus on company-specific positioning rather than expecting a broad-based tariff windfall for footwear names.

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