Foot Locker tumbled over 30% after the retailer gave a disappointing outlook as Nike Inc., its largest supplier, cut back on business.
The chain said no single vendor is expected to represent more than 60% of total purchases this fiscal year, down from 70% in fiscal 2021 and 75% in the previous year. That contributed to Foot Locker projecting profit and comparable sales well below Wall Street expectations for the current year, which runs through next January.
Business with Nike is shrinking as the footwear and apparel maker accelerates a shift to direct-to-consumer sales. Foot Locker said it’s trying to diversify its merchandise and sign new partnerships while also investing in new shopping platforms and opening more stores outside of malls.
”We continue to work to broaden our selection including leaning into brands where we are under-penetrated,” Foot Locker Chief Executive Officer Dick Johnson said on a conference call with analysts. He pointed to momentum across shoe labels including Adidas, Puma and New Balance.
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