Many footwear-company stocks are down in midday trading today as China’s Shanghai Composite market suffered an 8.5 percent slide — the largest one-day drop since 2007.
Nike Inc., Wolverine World Wide, DSW Inc., Deckers Brands and Skechers USA Inc. are among the shoe companies with declining share prices this afternoon, in tandem with the global economic slump. Wolverine dropped 2.4 percent.
At 1:10 p.m. EDT, the Dow had lost 127 points, or 0.73 percent, to land at 17,441, while the Nasdaq was down 43 points, or 0.84 percent, to 5,045.89. The S&P 500 declined 10 points, or 0.50 percent, to 2,069.34.
Insiders speculated that investors are losing confidence in the Chinese government’s ability to stop the mass stock sell-off. The Shanghai Composite began its downward spiral last month, following a period of growth that saw China’s main stock indexes more than double during the first half of the year.
China is the world’s No. 1 sourcing destination for footwear and apparel companies, so China’s economy could affect American companies beyond declining share prices.
The Footwear Distributors & Retailers of America (FDRA) says approximately 70 percent of U.S. footwear is sourced from China, the second-biggest economy in the world.