Why Crocs Stock Was Tanking Almost 4% Today
Shares of shoemaker Crocs (NASDAQ: CROX) were getting blasted today, falling 3.8% as of 1:25 p.m. ET. They were performing far worse than the market overall. For comparison, the S&P 500 was down 1.1%.
There was no specific financial news from Crocs that caused the stock drop. But the Bureau of Labor Statistics CPI (consumer price index) report yesterday is the likely cause. Inflation in the month of June was up 9.1% year over year, the biggest increase since 1980.
And what does this have to do with Crocs? With basics like food and gas driving the cost of living sharply higher, consumers are adjusting their spending habits. While retail sales were showing resilience in May (as measured by the U.S. Census Bureau), the economic picture is changing quickly. More-discretionary spend on things like clothes and apparel could be in for a pullback, which would be bad news for shoe companies like Crocs.
Source Fool.com
