Another Setback For Footwear Stocks

Another global sell-off roiled the markets Thursday, as fresh concerns about Europe’s banks fed fears of another global recession.
Footwear stocks were barely beginning to repair losses from the previous week when new data showing rising unemployment in the U.S. renewed investors’ flight from equities.

The U.S. Bourses opened sharply lower and continued to slide as the day progressed, with benchmark indices declining around the mid-single digits by day’s end.
The Dow Jones Industrial Average slipped 3.7 percent to 10,990.58; the S&P 500 lost 4.5 percent to 1,140.65; and the Nasdaq Composite gave up 5.2 percent to end at 2,380.43.
The footwear industry, as usual, swung wilder than the indices. A basket of 30 industry shares fell an average of 5.3 percent, as tracked by Footwear News.
Among the footwear firms who lost the most ground in trading Thursday were DSW Inc. and The Jones Group Inc.
Brown Shoe Co. Inc. fell the most, at 10.1 percent, to close at a new year-to-date low of $7.11. This was closely followed by Deckers Outdoor Corp., which declined 10 percent to close dangerously near its year-to-date low at $75.02.
All told, 26 firms ended in the red. Three eked out modest gains, and one finished flat.

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