Nike Inc. Stock Tumbles, Dragging Down Shoe Makers

Shares of Nike Inc. (NKE) took a nosedive in morning trading on Friday, sliding by 10.4%. This significant drop caused Nike to outpace all other losers in the S&P 500 (SPX) by a wide margin. Unfortunately, the disappointing earnings report from this athletic apparel giant had a ripple effect and dragged down the stock prices of other shoe makers as well.

VF Corp. and Under Armour Feel the Impact

Vans parent company, VF Corp. (VFC), experienced a 2.6% decline in stock shares, making it the third-biggest decliner in the S&P 500. Meanwhile, Under Armour Inc. (UAA) and Under Armour Class A (UA) both slumped 3.3%. Other shoe companies also faced losses, with Crocs Inc. (CROX) witnessing a 4.8% slide and Skechers USA Inc. (SKX) shedding 2%.

Foot Locker and Dick's Sporting Goods Follow Suit

Among prominent shoe sellers, Foot Locker Inc. (FL) endured a 5% drop in stock shares, while Dick's Sporting Goods Inc. (DKS) gave up 3.4%. These declines contrasted with the gains seen in the broader stock market, as the S&P 500 managed a 0.3% increase and the Dow Jones Industrial Average rose by 39 points or 0.1%. It is worth noting that Nike's stock reduction accounted for approximately 84 points of the Dow's decrease.

This sudden selloff among shoe makers highlights the impact of Nike's disappointing earnings report. As the industry watches closely, it remains to be seen how these companies will recover from this setback.