The sneaker industry is fun. We can’t deny that. Money-talk aside, sneaker botting in itself is a fun experience. You just gotta have a powerful sneaker bot and a good server, then you’ll be ready to start that reselling hustle you’ve always dreamed of! However, every market has a tough and dark side, and the sneaker market isn’t any different! It has its ups, but it also has some severe bad downs. Take a look at 2022’s sneaker news and you’ll get your proof. From Adidas kicking Ye out, to Nike giving up on Kyrie, it’s all there. But sadly enough, the bad news didn’t stay behind, as they’ve been dragging through 2023 as well! Now, aside from Nike’s new retailer rules update, Footlocker earnings and revenues are now out. And let’s just say that upon first look, they give you kind of mixed feelings.
Footlocker And Nike’s DTC Strategy
Before we start scrolling through statistics and reports, let’s let you in on one thing. Or might we call it a main cause of plunging numbers you’re going to see further in this article. Last year, Nike kind of accelerated its direct-to-consumer strategy (DTC Strategy). Which means that Nike took control of most of its stock. As in it distributed to retailers, like Footlocker, less and less stock than before. For example, Footlocker’s sales from Nike in 2020 amounted to 75%. This percentage dropped to nearly 70% in 2021 and kept on dropping to hit a new down- less than 60%- in 2022.
Footlocker Earnings And Revenues: Q4 2022
This being said, let’s see what Footlocker’s 2022 Q4 report is all about. So, what happened is Footlocker revenues and earnings have been declining until FL shares reached a new low in the March 20 trading session.
However, it isn’t only bad news today. Increased traffic and better access to high-quality inventory increased store sales by 4.2%. Also, Footlocker’s total sales exceeded Zacks Consensus Estimate by $185 million. However, the metric fell 0.3% from the last reported quarter.
Regarding stores, in the fiscal fourth quarter year, Footlocker closed 101 stores, relocated 45 outlets, and opened 21 new stores. The company’s future plans for fiscal 2023 include closing around 330 stores while opening 100 new ones. So, all in all, Footlocker wants to cut back its stores to 2,400 by 2026.
President and Chief Executive Officer also added “Our team delivered a great finish to the year with strong fourth-quarter results that capitalized on resilient Holiday demand and a compelling assortment and inventory position from our brand partners.” And it looks like the company set its future goals on “resetting the business” and “investing in our core banners and capabilities to position the Company for growth in 2024 and beyond.”
So, as for the future outlook, Footlocker revealed a “Lace Up” strategy, which consists of a “relaunch of the brand and reshaping its real estate footprint.” However, this is a long-term strategy directed towards increasing Footlocker revenues and sales for fiscal 2024 to 2026. Which means there’s light at the end of the tunnel for the company, after all. So, let’s hope for the best!
Wanna learn more about Footlcoker revnues and earnings, click here.
