5.16%
Wednesday, April 8, 2020
Volume 3, Issue No. 14

Tariff Relief Likely ‘Dead Issue’; U.S. Retail Imports at Five-Year Low

The Trump Administration apparently will not heed the pleas of more than 100 U.S. trade associations who last month sought an executive order to temporarily suspend duties on Chinese imports, including footwear, as a means to counter impacts from the COVID-19 pandemic. Read the full story.

March E-Commerce Sales Out of Step with Footwear

Various stay-at-home orders and non-essential businesses closures to prevent the spread of COVID-19 dramatically shifted what U.S. consumers were purchasing online last month. Read the full story.

More Width Options Would Benefit Shoe Brands

Citing research from its scans of two million U.S. footwear customers at more than 600 retail stores over more than four years, Volumental suggests a lack of data-driven design and... Read the full story.

Brands Stepping Up Efforts to Battle COVID-19

Industry brands continue to respond to the Covid-19 pandemic with assistance in a variety of ways. Carhartt is one of four corporate and public entities working with the Industrial Sewing and Innovation Center (ISAIC) in Detroit to...
Read the full story.

COVID-19: Links to Industry Resources

As the footwear industry grapples with the ongoing effects of the COVID-19 virus, we know you have questions about what the developments mean for your business, your employees and yourself. We’ve compiled a list of the industry resources to turn to for information and... Read the full story.

IN THE NEWS
REI, Outdoor Retailer Show, The Big Gear Show

REI Co-op president and CEO Eric Artz will forgo his salary for the next 6 months as well as his incentives for 2020 as the retail co-op will put the majority of its retail and field employees...
Read the full story.

Covid-19 Coverage: Recommended Reads

Each week, we’ll be recommending pieces that address the larger picture on the COVID-19 challenge. This week’s article from Forbes: "The Paycheck Protection Program And Your Small Business”

FOOTWEAR INSIGHT INDEX

After again approaching a ‘100’ INDEX score (equal to aggregate price of stocks on Dec. 29, 2017) last week thanks to a 24 percent increase for period, segment falls more than five percent as the calendar officially moves into the second quarter, U.S. employment claims approach 10 million over two weeks and consumer confidence sinks as stay-in-place orders impact millions from coast to coast. Nevertheless, the Dow rises 4.6 percent, or more than 1,001, helped by a more than 7.7 percent increase on the final day of the period. Crocs and Rocky Brands were the only gainers for the week. Eighteen stocks fell, seven by double-digits and led by retailers Shoe Carnival, Caleres and Designer Brands. DSW has placed 80 percent of its staff on a temporary unpaid leave of absence. As April began, an estimated 700,000 U.S. retail workers were jobless due to store shutdowns caused by COVID-19. Meanwhile Adidas, faced with some backlash in its home German market, reversed course and said it paid April store rents. Separately, the Three Stripes is reportedly seeking approximately $1.1 billion in German government aid to help it with liquidity. Puma, meanwhile, wants to suspend its FY19 dividend due to impacts from the ongoing pandemic, and Nike temporarily shuttered its 2.8-million sq. ft. distribution center in Frayer, TN, on April 2 after an employee tested positive for COVID-19. The facility was disinfected before reopening. — Bob McGee 
The Footwear Insight Index tracks 20 of the most important publicly traded companies that have a substantial footwear business (6 retailers, 14 brands).
Index base of 100 is key to the closing prices of 12/29/17

INDEX: 93

5.16%

Weekly Review

Company name
(Ticker Symbol)

% Change over week
Price 03/30/20 • Price 04/06/20

ASICS Corp.
7936.T

11.06%

$9.49 • $8.44

Boot Barn
BOOT

6.40%

$12.50 • $11.70

Crocs
CROX

6.17%

$17.50 • $18.58

Designer Brands
DBI

21.67%

$5.40 • $4.23

Genesco
GCO

11.37%

$13.63 • $12.08

Mizuno
8022.T

11.20%

$17.94 • $15.93

Puma
PMMAF

10.48%

$62.00 • $55.50

Shoe Carnival
SKVL

24.46%

$24.00 • $18.13

Steve Madden
SHOO

3.89%

$22.88 • $21.99

VF Corp.
VFC

8.50%

$59.75 • $54.67

Company name
(Ticker Symbol)

% Change over week
Price 03/30/20 • Price 04/06/20

Adidas
addyy

5.15%

$115.02 • $109.10

Caleres
CAL

22.47%

$5.43 • $4.21

Deckers
DECK

0.55%

$139.13 • $138.36

Foot Locker
FL

1.56%

$22.45 • $22.10

GEOX
GEO.MI

3.75%

$0.80 • $0.77

Nike
NKE

0.88%

$85.38 • $84.63

Rocky Brands
RCKY

0.71%

$18.33 • $18.46

Skechers
SKX

3.42%

$24.54 • $23.70

Under Armour
UAA

6.06%

$9.57 • $8.99

Wolverine
WWW

6.18%

$15.85 • $14.87

TOTAL
Week over week

5.16%

$681.59 • $646.44

ARCHIVES - April 1, 2020

Grassroots, FFANY Cancel June Events

Two more industry events have joined the ranks of COVID-19 related closings. On Tuesday, the Fashion Footwear Association of New York announced it would not be holding June market week, originally planned for June 1 to 5, to concentrate on the August edition... Read the full story.

Eye on Running
RIA Survey Provides Key Insights on Run Specialty Channel

The longer the COVID-19 crisis lurches forward, the more likely U.S. run specialty shops will be challenged to generate higher year-over-year monthly sales. Some 29 percent of run specialty survey respondents projected “up to flat” year-over-year sales in April... Read the full story.

Covid-19: Links to Industry Resources

As the footwear industry grapples with the ongoing effects of the COVID-19 virus, we know you have questions about what the developments mean for your business, your employees and yourself. We’ve compiled a list of the industry resources to turn to for information...
Read the full story.

Duty Relief May Be Coming to Footwear Companies

Seven months after more than 200 U.S. footwear companies urged the Trump administration to cancel higher tariffs on their Chinese imports, some temporary relief may be on the horizon. Read the full story.

Chaco’s Lisa Kondrat Describes the Pivot to Making Masks

ReChaco is resetting. As of Monday, March 30, the Rockford, MI-based factory that creates custom footwear and repairs older footwear for Wolverine’s sandal brand is now in the medical mask-making business. Read the full story.

Brands Stepping Up Efforts to Battle COVID-19

Chaco isn’t the only brand joining the effort. Boston-based New Balance said it was producing face mask prototypes in its Lawrence, MA factory and hoped to scale production to include its other New England factories soon. Read the full story.

IN THE NEWS
Shoe Carnival, Crocs, Columbia Sportswear, and More

Shoe Carnival senior executives declined to answer an analyst question about footwear vendors possibly extending dating on orders by 60 days during the company’s fourth-quarter conference call last week. Read the full story.