Foot Locker Shares Drop as Nike Sales Struggle
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Foot Locker shares fell 8% after the company reported a 1.4% drop in revenue to $1.96 billion for the third quarter, missing Wall Street’s $2.01 billion expectation. CEO Mary Dillon pointed to weaker demand for Nike products, which make up 60% of the retailer’s sales, as a key factor. Elevated promotions across the sneaker market and shifting consumer spending patterns further hurt results.
The company said consumer shopping patterns have shifted, with strong sales during key events like back-to-school and Cyber Monday but slower demand in between. Foot Locker’s relationship with Nike remains strong, according to Dillon, but she acknowledged the brand’s sales struggles are weighing heavily on overall performance.
Despite the challenges, Foot Locker is committed to its long-term growth plan, including store upgrades and expanding other brand partnerships. “We’re confident in our strategy and the steps we’re taking to build a stronger future,” Dillon said.
