CONNECT WITH US
eCommerce

eCommerce

What Nike’s Jordan pullback means for Foot Locker

Retail Dive – E-commerce logo

Published on

Add as a preferred source on Google
What Nike’s Jordan pullback means for Foot Locker

With Jordan accounting for roughly 25% of Foot Locker’s revenue, the athletics retailer will have some gaps to fill next year.

Nike’s earnings earlier this month signaled a longer turnaround timeline for the activewear giant, but one of the retailer’s biggest problem areas could deal damage to its wholesale partners’ prospects as well.

The Jordan brand is a crucial piece of the puzzle for Foot Locker’s turnaround. But the most recent quarter made clear that Jordan will require more time to get healthy.

While Jordan brought in $8.7 billion in fiscal 2024 for Nike, the iconic brand is down about 20% from that benchmark. In Nike’s latest quarter, Jordan revenue fell in the mid-teens, and CEO Elliott Hill said the company would be pulling back on retro Jordan launches to correct for an oversupply.

“We’ve discussed it with our wholesale partners,” Hill said earlier this month. “Together, we will restore balance to the marketplace to create a foundation for more profitable and sustainable growth.”

In the meantime, though, that means more pain for Foot Locker, which saw comps fall 3.6% in Q2. Parent company Dick’s Sporting Goods, which bought Foot Locker for $2.4 billion last year, already drastically lowered Foot Locker’s full-year outlook in August. The retailer now expects Foot Locker comps to be flat or fall as much as 2%, compared to previous expectations of up to 3% growth.

A pullback on Jordan retro products complicates that picture further, analysts say, pinning Foot Locker’s exposure to Jordan at roughly 25% of revenues.


Source link
Related Topics:eCommerce

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.