Connect with us

Hi, what are you looking for?

DOGE0.070.84%SOL19.370.72%USDC1.000.01%BNB287.900.44%AVAX15.990.06%XLM0.080.37%
USDT1.000%XRP0.392.6%BCH121.000.75%DOT5.710.16%ADA0.320.37%LTC85.290.38%
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Finance

Finance

Foot Locker shares up 20%

Foot Locker is on the up-and-up, but will it be long-term?

The apparel and shoe store saw its shares boost on Friday, after exceeding earnings expectations.

Moreover, Wall Street anticipated earnings per share of $1.25. Foot Locker eclipsed this figure by reporting a $1.45 EPS in the first quarter. It also reported $1.9 billion in sales, which also exceeded expectations. Because of these reports, Foot Locker (FL) shares rose 20% on Friday.

However, Foot Locker still isn’t thriving. Its Q1 revenue is 1.4% lower than 2017’s first quarter. Even after the Friday jump, Foot Locker shares are still down 25% since January 2017.

This decline is largely due to the continued growth of Amazon. The e-commerce giant continues to expand its online apparel catalog, and companies increasingly offer their products on the platform. Recently, Nike announced that it would sell some products on Amazon.

The expansion of online sales could hurt Foot Locker revenue significantly. In a 2017 UBS survey, 13% of consumers reported they would rather by a Nike product on Amazon than in Foot Locker, compared to just 9% who voted the opposite.

Gradually, consumers are becoming more and more digital, and it is hurting brick-and-mortar stores. The epidemic started with toys, putting Toys “R” Us out of business. It has recently spread into groceries, impacting stores like Walmart and Target. And now, apparel stores like Foot Locker are hurting because of the growth of e-commerce.

The growth of shoe sales because of recent design developments by Adidas and Nike has been instrumental in Foot Locker’s early 2018 successes. However, they may have to increase digital sales if they hope to compete with Amazon.

 

Featured image via Foot Locker


Comment Template

You May Also Like

business news and trends

Amazon Founder Jeff Bezos Wraps Up $8.5 Billion Billionaire Jeff Bezos has continued his sell-off of Amazon shares, recently disposing of another 14 million...

Technology

On Wednesday, Amazon.com (AMZN.O.) announced several hundred streaming and studio layoffs in an internal message as corporations continue their significant employment cuts beyond 2024....

AI

Imagine a future in which robots understand and respond to your emotions and social cues in a world where technology is not just developing...

Business

Russian distributor to launch sales of Adidas and Reebok goods—Kommersant. According to a story published in the Kommersant newspaper on Wednesday, a Russian distributor...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok