Foot Locker tumbles to near 13-year low, drags peers, on forecast cut

Hibbett

23/08/2023 15:16

(Updates)
    ** Shares of Foot Locker  FL.N  slump as much as 36% to a
near 13-year low of $14.84, dragging down other sports-related
stocks
    ** Company cuts FY sales and profit forecast, hit by a drop
in demand as inflation-weary customers curb spending
    ** CEO Mary Dillon says trends softened in July and the
lowered 2023 forecast would help "compete for price-sensitive
consumers"
    ** FL's Q2 gross margin declines 460 bps on higher
promotional activity and inventory shrink
    ** Peers Under Armour  UAA.N  down ~3% and Nike  NKE.N  down
4.5%; Puma  PUMG.DE  down ~5%, Adidas  ADSGn.DE  down ~4%
    ** Nike stock falls for tenth consecutive day, extending its
longest losing streak on record
    ** Athletic goods retailers also fall — Hibbett  HIBB.O 
down ~5% and Dick's Sporting Goods  DKS.N  falls ~3%

 (Reporting by Ananya Mariam Rajesh and Juveria Tabassum in
Bengaluru)
 ((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam))