Consumer
Foot Locker Plummets as Investors Unimpressed by Progress
- Store remodels are emphasizing brands like Nike and Adidas
- To simplify business, retailer is closing shop in four markets
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Foot Locker Inc.’s sales surpassed analysts’ expectations as turnaround efforts and a rekindled relationship with key partner Nike Inc. begin to pay off, but investors remain unimpressed by the progress.
The sneaker seller snapped five consecutive quarters of negative comparable sales with a 2.6% gain for the quarter ended Aug. 3, outpacing the average of analyst estimates. Revenue of nearly $1.9 billion also surpassed Wall Street’s expectations. But one downside to the results was that the chain reiterated its sales guidance for the year, rather than increasing it.