Foot Locker says it faces no “imminent threat” from Amazon
25/08/2017
Compared to the first six months of 2016, these figures represent declines of 1.7% in sales and of 27.3% in net income. With regard to the second quarter on its own, the falls were of 4.4% in sales revenues and of 59.8% in net income.
Chief executive, Dick Johnson, said on announcing the results: “We are obviously disappointed in the results for the second quarter and our team is working quickly to adjust our operations to a changed retail landscape. We are seeing our consumers move faster than ever from one source of inspiration or influence to another.”
In addition, Mr Johnson said sales of a number of high-profile styles of athletic shoe had slowed down; he singled “certain Jordan models” from Nike and the Stan Smith shoes from adidas. Foot Locker had planned for lower sales of the Stan Smith shoes, but he said sales had declined “even more than expected”.
He said Amazon’s entry into the athletic footwear market, securing the right to sell certain shoes from certain brands directly to consumers, would affect sales of “lower-price, largely undifferentiated shoes”, but that Foot Locker faced no “imminent threat” from this development because most of its sales of adult shoes are still more than $100 per pair. But he added: “Our eyes are wide open. The athletic footwear retail game has changed. The overarching issue revolves around premium product and the speed with which innovation comes to market.”
Share this story:
