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.
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?
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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