Foot Locker collapses on the stock market: two heavy quarters for the sportswear giant
Two nightmare quarters for one of the biggest and best-known sellers of sportswear and footwear, Foot Locker plunged again after filing second-quarter earnings. And the collapse was not painless because forecasts for the entire year were lowered again and it was dividend suspended. Shares fell more than 30% to $14.84, a 13-year low. What are the reasons for this “almost nightmare” trend?
First i low consumption which coincide with a situation made up of high interest rates and inflation. A mix that is slowing down household consumption. And then definitely there competition between competitors the likes of Nike and Adidas and e-commerce which, especially in the United States, is king by bringing the consumer into the store to try and then buy the product chosen on the web. Foot Locker’s famous black and white striped T-shirts are featured in nearly 2,600 stores in 26 countries (North America, Asia, Europe, Australia and New Zealand). Around 200 franchises in the Middle East and Asia complete the network.
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