c-foot-RTX2U623-Rick Wilking

After seven years of growth, Foot Locker registered its first drop in sales

6%

Foot Locker registered a drop in sales of 6% in the second quarter.

Published   |  Photo by Reuters/Rick Wilking
c-foot-RTX2U623-Rick Wilking
6%

This is the first time in seven years that the sportswear and footwear chain has registered a drop in sales. And it came as a surprise, as analysts expected growth of 1.7%.

c-foot-RTX2U623-Rick Wilking
6%

Nike is partially to blame. There is a disconnect between what store offers (running and sports shoes) and what most American consumers are buying (casual sneakers).

c-foot-RTX2U623-Rick Wilking
6%

But if that’s hurting Foot Locker it’s because the chain relies too much on Nike. Almost seven out of every 10 products bought by Foot Locker last year were from Nike.

c-foot-RTX2U623-Rick Wilking
6%

Also, Foot Locker is seeing consumers abandon its stores to purchase products online, both directly with the brands or through sites like Amazon.

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