Goldman Comments Sink Footwear Retailers (FL, NKE, PSS)

Shares of Foot Locker (NYSE: FL) are tumbling today after a Goldman Sach's analyst downgraded the stock from Neutral to Sell and lowered the Company's price target from $17 to $10. As the research report came out before the market opened this morning, Foot Locker's stock gapped lower at the open, but quickly began selling-off and hit a new 52-week low at $9.05 just after 11 a.m. Shares of Foot Locker are now trading down $1.71, or 15%, to $9.57.

Goldman also made comments on several other footwear retailers, including Nike (NYSE: NKE) and K-Swiss (Nasdaq: KSWS), and lowered its price targets on these companies too. Nike was cut from $73 to $67, while K-Swiss's price target was lowered from $21 to $16.

The firm attributed the price target reductions to a possible U.S. recession, which would certainly hamper consumer spending. As the comments were quite broad, most stocks in the footwear retail industry are falling today. Besides Foot Locker, several other retailers are hitting new 52-week lows during today's trading session: shares of DSW Inc. (NYSE: DSW) have moved as low as $15.94 and Collective Brands (NYSE: PSS) went to a new low of $14.38.

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