Here’s Why Shoe Shares are Trading Targets: ADDYY, SKX, SHOO, CROX, NKE, DECK
Reebok’s recent settlement to the Federal Trade Commision of $25 million has shoe stocks looking a little turbulent. The settlement was to resolve accusations that Reebok “deceptively advertised” their line of toning footwear which they claimed would tone leg and buttocks muscles. The settlement will be available for consumer refunds. Though the settlement is small to such a large industry, all companies could now be put under pressure to substantiate their claims regarding toning footwear.
“The FTC wants national advertisers to understand that they must exercise some responsibility and ensure that their claims for fitness gear are supported by sound science,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection.
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Reebok’s stock (ADDYY) is down 1.71% to $32.67 on the news. Shares are up 3.88% in the past 52 weeks. The stock has traded in a 52-week range between $29.70 and $40.72.
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