On Friday, Footlocker's stock (NYSE:FL) dropped nearly 28% following its Q2 reports. You can read a summary about their reports here. FL missed analyst estimates on revenue, profit, and margins, leading to questioning if the footwear market was weakening. FL is down 51% YTD further explaining the weakening of the footwear market. Their CEO claims that a lack of innovative products was the cause for the downward pressure on sales.
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How can a lack of innovative products be the cause here? Ultra boosts and yeezys are the most innovative shoe I've seen in my life. Could overpriced shoes be the real cause?
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Is it time to buy FL? Or is there too much uncertainty in the footwear market?
I think people who are buying innovative shoes aren't going to footlocker. They buy them directly from the maker or from a specialty website. People who just want a normal pair of shoes can easily find basics online either on sites like Amazon or form the maker.
I think there is too much uncertainty in the footwear market to make a legitimate move.
Agreed, I personally go to the adidas/Nike website before footlocker when shopping for shoes online
I agree, the footwear market along with the clothing market has too much uncertainty. Most people who buy the latest shoes/sneakers are also the same ones who look down on going to Footlocker.
Many traditional retail outlets we came to know are facing uncertainty (Sears, JCPenny, Best Buy, etc.).
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