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While still in a crater after Friday’s dump off, Foot Locker’s stock today is slowly rebounding. But the retailer must continue to contend with the impact of Nike’s shift toward DTC.
Although Foot Locker didn’t name Nike outright in its earnings report, it said that no single vendor is projected to account for more than 60% of total purchases this fiscal year. And that revenues would fall.
- Nike accounted for 70% of Foot Locker’s purchases in 2021, per its annual report.
Something’s gotta stick: Nike aside, Foot Locker noted that relationships with other suppliers, like Adidas, Puma, and New Balance, would help overcome the speed bumps. Reebok, for instance, recently expanded its partnership with the company to diversify its assortment of products both online and in stores.
And, and, and: More recently, Foot Locker has been stepping into new strategies to go “off mall” and expand its reach. It acquired WSS, a national shoe retail chain, and Atmos, a Japanese sneaker company, last summer for $1.1+ billion.
- “They both gave us an opportunity to broaden our customer base and cater to different aspects of youth culture, which is our mission,” Jed Berger, Foot Locker’s global CMO, previously told Retail Brew.
The retailer has also debuted four private labels—including Cozi, a womens’ apparel brand, last December.—JS