Why Crocs Stock Fell Nearly 4% Today

Shares of foam clog maker Crocs (NASDAQ: CROX) were down 3.8% today as of market close. There was no specific news from Crocs to cause the pullback. However, consumer confidence is falling as inflation rises. According to The Conference Board's Consumer Confidence Survey, households are feeling the most pessimistic about the outlook for income, business, and labor market conditions since early 2013.  

Since Crocs is an apparel company, shopping for shoes could take a hit if a recession strikes and consumers tighten up their budgets.

A consumer sentiment index is backward-looking and isn't exactly a reliable tool for predicting whether tough economic times are ahead or not. The last time the Consumer Confidence Expectations Index was this low (March 2013), the stock market was gearing up for a massive run higher. From March to the end of December 2013, the S&P 500 notched a 22% gain.  

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Source Fool.com