×
2 549
Fashion Jobs
ESTEE LAUDER
Mac Cosmetics - Business Manager - Mac Stratford2, London - 37.5 Hours / Week - Full Time, Permanent
Permanent · London
HARRODS
Brand Manager
Permanent · LAKESIDE
HARRODS
Uniformed Security Officer
Permanent · LONDON
VF INTERNATIONAL
Senior Distribution Systems Specialist
Permanent · COALVILLE
ESTEE LAUDER
Bobbi Brown, la Mer And Darphin - CRM & Insights Assistant
Permanent · London
JOHN LEWIS
Section Manager Customer Delivery Speke Cdh
Permanent · SPEKE
HARRODS
Food Supply Manager
Permanent · LONDON
JOHN LEWIS
Loss Prevention Partner
Permanent · CAMBRIDGE
HEAD OFFICE
Cyber Security Lead – Incident Response
Permanent · BRACKNELL
HEAD OFFICE
Delivery & Operations Manager
Permanent · BRACKNELL
BOOHOO GROUP
Product Manager
Permanent · MANCHESTER
DEBENHAMS
CRM Executive
Permanent · LONDON
PRETTYLITTLETHING
Business Analyst
Permanent · MANCHESTER
PRETTYLITTLETHING
Buying Admin Assistant
Permanent · MANCHESTER
BOOHOO GROUP
Warehouse Operative - pm Shift
Permanent · WELLINGBOROUGH
BOOHOO GROUP
Product Insights Manager
Permanent · MANCHESTER
BOOHOO GROUP
Technical Delivery Manager
Permanent · MANCHESTER
BOOHOO GROUP
Business Analyst
Permanent · MANCHESTER
PRETTYLITTLETHING
Senior CRM Automation Executive
Permanent · MANCHESTER
BOOHOO GROUP
Senior Project Manager
Permanent · MANCHESTER
BOOHOO GROUP
Warehouse Team Manager - Twilight Shift
Permanent · WELLINGBOROUGH
ESTEE LAUDER
Clinique - Consultant - Boots Oracle, Reading - 11 Hours, 2 Days (Sat. Sun.) - Part Time, Permanent
Permanent · Reading
Ads
By
Reuters
Published
Feb 28, 2022
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Foot Locker shares stumble as 2022 forecast hit by Nike's shift

By
Reuters
Published
Feb 28, 2022

​Shares of Foot Locker Inc plunged as much as 36% on Friday following a bleak full-year forecast that underlined the footwear retailer's struggles as biggest supplier Nike Inc ramps up selling directly to customers.


Foot Locker


Nike will account for about 60% of total purchases for 2022, down from 70% in the past year and 75% in 2020, the company said on a post-earnings call.

This change reflects Nike's shift in strategy to direct-to-consumer (DTC) business and Foot Locker's ongoing efforts to diversify its offerings, the company said.

"We always thought that Foot Locker's position as a 'strategic partner' would insulate them somewhat from Nike's DTC push... but this is a dramatic change," said Wedbush analyst Tom Nikic.

"We don't really see a silver lining here."

Nike, battling supply chain issues and production facility closures over the last year, has been increasingly moving toward directly selling to consumers instead of wholesalers.

In its latest quarter, DTC sales rose to $4.7 billion, accounting for about 40% of Nike's total sales.

"We still have access to all of those products. We'll just see different quantities flowing our way," Foot Locker's Chief Executive Richard Johnson said on the call.

Foot Locker has been leaning on other brands including Adidas, Puma and Timberland to mitigate the risks from Nike's new strategy, while also expanding its apparel offerings and launching its private label brands to diversify.

The company said it expects comparable sales to fall 8% to 10% in fiscal 2022, while estimating adjusted profit between $4.25 and $4.60 per share. Analysts on average were expecting $6.49 per share, according to Refinitiv estimates.

Foot Locker's shares were down 35% at $26.85 in afternoon trading. If the losses hold, the stock was set for its worst day ever.

© Thomson Reuters 2022 All rights reserved.