Foot Locker (FL) missed Q2 profits, revenue and margins estimates, driving the stock to a 52-week low. The sneaker and apparel chain is now down more than 50% for the year. FL reported same store sales were down YOY(6%) for the first time since 2009, perhaps signaling the end of the long-running athletic footwear bull market. CEO Richard Johnson stated the company will be aggressive in reviewing its 3300+ store fleet and intends on closing more than the 100 stores announced earlier this year, to get the company back on track.
Foot Locker’s struggles may stem from lack of ‘innovative new products’
Howie Long-Short: NKE is telling us they see future growth in direct to consumer sales. FL is telling us that the NKE/AMZN partnership is not an imminent threat to their business. It certainly sounds like cognitive dissonance to me.
Fan Marino: The elephant in the room? Basketball sneakers simply aren’t fashionable with kids right now.
