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Foot Locker drags down sports retailers

Friday, August 18, 2017 - 01:28

The athletic wear retailer's dismal quarterly sales caused its stock to plunge and took down those of other sports retailers and sporting goods makers. Fred Katayama reports.

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Sporting goods stocks getting slammed on Foot Locker's weak results. The athletic wear retailer's quarterly sales at existing stores fell 6 percent. And Foot Locker warned those sales will decline by up to 4 percent for the rest of the year. Some analysts say that could be a sign that appeal for athleisure clothing may be coming to an end. That's the trend of wearing apparel for workouts in other settings exemplified by Lululemon's yoga pants. Foot Locker blamed the dismal sales on the lack of new innovative products. It's the latest sports retailer to report weak earnings. Earlier Friday, Hibbett Sports said its same-store sales fell nearly 12 percent. On Tuesday, Dick's Sporting Goods posted flat comparable sales and warned that'll decline in the third quarter. Ken Kamen of Mercadien Asset Management: SOUNDBITE: KEN KAMEN, PRESIDENT, MERCADIEN ASSET MANAGEMENT, (ENGLISH) SAYING: "It used to be that a couple of big endorsements and brands around them did a lot. Now, as I said before, someone's more likely to buy if they see five of their friends buying it and now they can see that through Facebook or some obscure celebrity bought it somewhere and it's now on Facebook." Foot Locker's shares plummeted intraday to a four-year low, adding on to their 50 percent slide this year. Also falling: shares of athletic wear makers whose goods are stocked at Foot Locker, Nike and UnderArmour .. and shares of sports retailers Big 5 and Finish Line.

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Foot Locker drags down sports retailers

Friday, August 18, 2017 - 01:28