Wall Street is nearing the end of a tumultuous week as investors concerned over the escalating coronavirus outbreak are selling off shares — and footwear players are seeing notable share losses.
As of noon on Friday, the Dow Jones Industrial Average plunged more than 560 points, while the S&P 500 slid 80-plus points and the Nasdaq Composite’s dip neared 250 points. Analysts have expressed fears that the illness — which has now surpassed 100,000 cases worldwide and caused 3,400 deaths — will not only lead to further disruptions in global supply chains, but also push the economy into a recession.
Blue-chip stock Nike Inc. kicked off the week in the red. The Swoosh was already down after last week’s Dow performance, the market’s biggest weekly loss since the 2008 financial crisis. During the last five days, the sportswear giant’s shares sank 2.3% to $87.39. The firm has also made headlines in recent days over the temporary closures of its offices in the United Kingdom, which are undergoing deep cleaning as a precaution amid the outbreak.
Other major shoe stocks also recorded declines in the past week: Famous Footwear parent Caleres Inc. noted a nearly 18% drop in its stock to $9.55. (Roughly 60% of the St. Louis-based company’s footwear imported to the United States is manufactured in China, where the virus originated in early December.) VF Corp. — owner of Vans, Timberland and The North Face — as well as Sperry and Merrell parent Wolverine World Wide Inc. saw losses of 3% to $70.38 and 6.5% to $24.63, respectively.
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Skechers USA Inc., which was among the companies that issued warnings over the potential impact of the coronavirus on its business, watched its shares fall 7.5% to $30.85 over five days. Crocs Inc. also suffered a more than 12% drop in its stock to $23.47, compounded by a weakened outlook announced last week that showed an anticipated revenue loss of $40 to $60 million for the full year. Steven Madden Ltd. — which predicted that workers would be delayed in returning to manufacturing floors and cautioned subsequent production delays — recorded a 3% decline to $31.52.
Amid the outbreak, hundreds of companies have updated their risk disclosures as well as advised employees to take safety measures, such as working remotely from homes or imposing a self-quarantine if they have recently traveled to any of the affected regions. According to the Centers for Disease Control and Prevention, those with low-risk exposure are not restricted from public places as long as they are asymptomatic.
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