Skechers (NYSE:SKX) shares dropped 6% in premarket trading after the footwear company reported first-quarter revenue below expectations and pulled its full-year guidance, citing macroeconomic uncertainty tied to shifting global trade dynamics.

The company delivered earnings of $1.17 per share, matching analyst forecasts. However, revenue came in slightly short at $2.41 billion versus the $2.43 billion expected by Wall Street.

More concerning to investors was Skechers’ decision to withdraw the annual outlook it provided in February, saying it will not issue financial guidance at this time due to unpredictable global economic conditions. The move raised red flags about visibility into future performance, especially given rising trade tensions and shifting consumer trends.

While the company noted that sales trends remain generally solid across most international markets, challenges persist in the U.S. amid weakened consumer sentiment and in China where economic uncertainty continues to weigh on demand.

According to analysts at Stifel, Skechers is prioritizing margin protection and brand investment through cost-sharing with vendors, pricing actions, and strategic sourcing. However, these efforts are expected to pressure margins in the near term.

The results and cautious stance reflect the delicate balancing act facing global retailers—navigating rising costs, uneven demand, and geopolitical headwinds while trying to protect long-term brand strength.