While Foot Locker saw a 70 percent profit increase in its second quarter, the retailer’s shares are continuing to slide today after comps came in lower than expected.
The athletic giant, which reported sales of $1.78 billion, revealed some important details on its conference call — notably that overall footwear comps were down. According to EVP and CFO Lauren Peters, selling prices were up, while unit sales were lower.
Even though women’s and kids’ were a tough sell, men’s comps rose in the period. Chairman and CEO Richard Johnson detailed several silhouettes that were driving growth from Nike and Adidas.
Hot styles from the Swoosh included the Air Max 270, the Air Max 97 and Tuned Air looks. For Adidas, the Deerupt, X_Plr and Yeezys were the star performers.
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But Nike and Adidas had some competition from two smaller brands. Vans and Fila, which have both been on a roll this year, were standouts for the retailer.
Slides, one of the hottest men’s trends of the summer, also delivered.
The momentum of these styles is expected to continue through the back-to-school and holiday rushes, according to Johnson.
Meanwhile, the biggest disappointment for Foot Locker was basketball. Sales were down in the high single digits, with signature product declining double digits. But the exec said Nike’s LeBron franchise was “a clear bright spot.”
Throughout the United States, Johnson said Jordan Brand has “strategically been pulling back at units in the marketplace,” which has impacted the label’s sales in all of the company’s banners. Analysts continued to be concerned about the health of the Jordan business, both overall and at Foot Locker specifically.
Within the company’s other banners, Champs Sports saw success with several of the same looks at the flagship retailer. Nike Air Force 1 and Adidas Swift Run also racked up sales. At Kids Foot Locker, sales were driven by Tuned Air, Air Max 270, sneakers from Vans, slides, and Nike LeBron models.
In Europe, Nike Air Maxes led the way for Foot Locker; the Nike Air Force 1, the Fila Disruptor as well as the Deerupt and Yeezy looks from Adidas also did well, despite declining footwear sales.
Moving forward, the retailer is focusing on opening its new “power stores” in key markets and will continue to push digital.
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