Shoe stocks are in the red Tuesday, following the 1,040-point tumble of the Dow over concerns of a much wider conflict in the Middle East.

Among the brands, shares of On Holding AG were down 12.9 percent to $40.71 in late morning trading. While the company reported higher Q4 profit and record sales, the decline reflected investor disappointment with its 2026 outlook. Dylan Carden, an analyst from William Blair has an “Outperform” rating on shares of On, noting that even though revenues were set 6 percent below initial expectations, “[W]e see a healthy brand with strong demand signals across all segments and geographies, at improving profitability.”

Among other shoe brands, shares of Asics was down 8.3 percent to $28.00; Caleres Inc. was down 6.3 percent to $10.66; Birkenstock Holding plc was down 6.3 percent to $39.83; Allbirds Inc. down nearly 6 percent to $2.68, and Wolverine Worldwide Inc. was down 5.1 percent to $17.05..

When it came to retailers, shares of Academy Sports + Outdoors Inc. was down 6.3 percent to $35.50; Deckers Outdoor Corp. fell nearly 6 percent to $107.67; and Designer Brands Inc. declined 5.2 percent to $6.82.

A report from ING said that military action in the Middle East — the U.S. has dubbed its involvement Operation Fury — has the potential to reshape the region, with significant implications for the global economy and markets.

One of the current concerns for the fashion sector surrounds prolonged supply chain disruption for China and Europe involving the Strait of Hormuz. The Strait is the “single most important chokepoint in global energy trade, and it now sits in an active war zone,” ING analysts noted. Consequences include spikes in shipping premiums, vessel rerouting or pausing of transits, Gulf airspace closures along the aviation corridors between Europe and Asis, and potential Houthi reactivation in the Red Sea that could see closure of alternative routing that kept goods moving in previous Hormuz tension episodes.

For the U.S., the expectation for trade exposure to the Strait is limited, although higher global oil prices would impact U.S. consumers who are already stretched by ongoing inflationary pressures. The ING report also noted that the conflict drags and uncertainty weighs on business investment and consumer confidence, the growth outlook darkens as well.