Sneaker giant Foot Locker is feeling the crunch of nationwide inflation and fears of a recession as their shares took a 27% dip recently. The company made drastic revisions to its annual sales and profit forecasts, blaming decreasing demand and massive discounts for the hit. Foot Locker also reported weak first-quarter results despite bringing in a new Chief Financial Officer and recently announced plans to shutter over 400 locations.
Within sneaker circles, this comes as no real surprise as Nike scaled back allocations for retailers in an effort to pursue a more direct-to-consumer model. Also, the loss of revenue generated by Yeezy sales most assuredly plays into a downturn in sneaker sales industry-wide. Combine those factors with an overall slumping economy, and it's easy to see why sales would be down for retailers in the sneaker world.
It's hard for true sneakerheads to feel sorry for the brand, as Foot Locker is known for serving both sides of the aisle. In 2017 they made a $100 million investment into the resale marketplace GOAT, which led sneaker purists to wonder how Foot Locker can keep consumers' best interests at heart while also participating in selling sneakers at extreme markups.
Foot Locker's attempt to have their cake and eat it, too, is catching up to them. After all, one of the major competitors, JD Sports, has been rapidly expanding recently and isn't slowing down. To stay up to date on all the latest news on sneakers, streetwear, and collectibles by following us on Twitter and Instagram.
Sneaker giant Foot Locker is feeling the crunch of nationwide inflation and fears of a recession as their shares took a 27% dip recently. The company made drastic revisions to its annual sales and profit forecasts, blaming decreasing demand and massive discounts for the hit. Foot Locker also reported weak first-quarter results despite bringing in a new Chief Financial Officer and recently announced plans to shutter over 400 locations.
Within sneaker circles, this comes as no real surprise as Nike scaled back allocations for retailers in an effort to pursue a more direct-to-consumer model. Also, the loss of revenue generated by Yeezy sales most assuredly plays into a downturn in sneaker sales industry-wide. Combine those factors with an overall slumping economy, and it's easy to see why sales would be down for retailers in the sneaker world.
It's hard for true sneakerheads to feel sorry for the brand, as Foot Locker is known for serving both sides of the aisle. In 2017 they made a $100 million investment into the resale marketplace GOAT, which led sneaker purists to wonder how Foot Locker can keep consumers' best interests at heart while also participating in selling sneakers at extreme markups.
Foot Locker's attempt to have their cake and eat it, too, is catching up to them. After all, one of the major competitors, JD Sports, has been rapidly expanding recently and isn't slowing down. To stay up to date on all the latest news on sneakers, streetwear, and collectibles by following us on Twitter and Instagram.
