Shoe Stocks Tumble in Wake of Credit Downgrade

Footwear stocks felt the sting of Wall Street worries at the close of trading on Monday, the first day after Standard & Poor’s historic downgrade of the federal government’s credit rating last Friday.
Of the 30 footwear companies tracked by Footwear News, 29 posted declines for the day, with an average drop of 8.5 percent.
At the market’s close on Monday, the Dow Jones Industrial Average had fallen 635 points, or 5.6 percent, to 10,809; the S&P 500 had dropped 80 points, or 6.7 percent, to 1,119; while the Nasdaq declined 175 points, or 6.9 percent, to 2,358.
In the shoe sector, the biggest decliner was Crocs Inc., which fell $4.01, or 14 percent, to close at $24.63. The Jones Group Inc. also dropped nearly 14 percent, losing $1.48 to finish at $9.37.

Others were also down by double digits. Brown Shoe Co. fell 13 percent, as well as K-Swiss Inc., which was downgraded on Monday by Sterne Agee analyst Sam Poser following poor quarterly results last week.

Deckers Outdoor Corp. and Rocky Brands Inc. both dropped 12 percent in trading on Monday. And the market’s close saw an 11 percent decline for Cabela’s, DSW, Genesco, Iconix Brand Group and Under Armour.

The majority of remaining footwear stocks posted valuation declines of between 3.42 percent and 9.72 percent. Auri Inc. inched up slightly, adding 1 cent to its stock price.

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