Footwear Stocks Fall as Europe Worries Investors

Footwear Stocks Fall as Europe Worries
Although shoe stocks continue to track the declines of the market as a whole, analysts rate many of them a firm buy.
Getty Images.

Footwear stocks were down Tuesday as investors grew increasingly concerned about Europe’s fiscal health with the spiking of borrowing costs in Spain and Italy.

A basket of 30 industry stocks tracked by Footwear News fell a median of 2.9 percent, while the benchmark S&P 500 lost 24 points, or 1.7 percent. Earlier in the day, the European FTSE 100 index slumped 2.2 percent.

Meanwhile, borrowing costs in Europe trended higher as governments struggled to push through budget cuts. Yields on Spain’s 10-year bonds hovered just under 6 percent, the highest level in more than three months. In Italy, the yields were near 5.7 percent.

Among the largest losers in the U.S. stock market were K-Swiss Inc., Brown Shoe Co., Genesco Inc. and The Jones Group Inc., all of which lost at least 4 percent in trading Tuesday.

Kenneth Cole Productions Inc. slipped 1.1 percent but managed to stay above $16 as it remains under negotiations for founder and chief creative officer Kenneth Cole to take the firm private.

Collective Brands Inc., another takeover target, slipped 2.4 percent to $18.59.

There was only one gainer: LaCrosse Footwear Inc., which closed 3.8 percent higher at $13.09 a share.