Foot Locker Shares Drop 30 Per Cent As Nike Sales Expected to Decline
Image Credit: Foot Locker
have released their financial report for Q4, 2021 and some figures may have investors and stakeholders feeling trepidation – especially as the retailer expects fewer sales in the future.
As reported by , share prices on Friday fell about 30 per cent, and reported net income fell by over $20 million compared to the same period the previous year. This is in spite of total sales increasing for the quarter.
The major retailer expects new challenges in coming months and years as their partnership with Nike – their largest product supplier – tightens up. The Swoosh have been shifting their attention to a direct-to-consumer business model, and as a result have reduced their offering to third-party retailers. FL have anticipated sales will decrease this year by four to six per cent as the shelves will carry less Nike.
However, it’s not all doom and gloom for FL. The company plans to strengthen their assortment with other brands, such as ramping up an , whereby products like Shaq and Allen Iverson signature sneakers will be only available from the retailer’s network. And, despite the ‘Foot’ part of their name, the revenue from their apparel sales is growing faster than footwear, so there will be diversification in that area with private label and vertical brands.