"Die Schuhe mit Leder"
Because the German shoe is not entirely made out of leather, it just has leather. The shoe with leather, it literally says. It's not quite the same.
Does it mean that the shoes are made out of leather, or at least the upper part (excluding the laces of course) ?
If so, the correct translation in english would be "The shoes are leather" or "The leather shoes"
Shoes with leather more implies that the shoes are near some leather... sometimes its difficult to know if it has a proper meaning or if it is just another weird sentence!
That is a possibility if non-leather shoes with leather detailing exist, but my main question was: What does it mean in German? If it can mean "the shoes made (mostly) of leather" or "the shoes with leather uppers" than it is best translated as "The leather shoes". Because in english we would never refer to leather shoes as "The shoes with leather".
Alternatively, if "Die Schuhe mit Leder" has the same obscure meaning in German as "The shoes with leather" does in english then the current translation is fine.
It could be a response to "Which shoes?" Sounds less awkward in that case, but still less definitive than "leather shoes".