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This week, stock in
Uggs went down 39 percent, and other shoe brands aren't far behind. USA Today notes that "Just 26 other stocks in the Standard & Poor's 1500 index have fallen by 30% or more in a single day over the past two years." While this may not seem like a big deal on its own, other shoe brands, including Steve Madden, Skechers, and Heelys, are also down considerably. So what's the big deal? Shoes fall under the rubric of "discretionary spending," which usually means that they're things people hold off on buying until the economy is better or they have more spending money.
[Update: An earlier version of this article identified Uggs as a brand whose stock had declined, which is not the case. We regret the error.]
Shoes fall under the rubric of "discretionary spending," which usually means that they're things people hold off on buying until the economy is better or they have more spending money. Crocs stock had a meteoric rise over the last year, but like all bubbles there has to be a pop. Other shoe companies like Nike are still doing well, so perhaps this shift is an indication of a fad being over more than of all shoe stocks being on the decline.