Foot Locker (New York) announced its expectation that its revenue may drop in 2022 due to the decrease in amount of Nike (Beaverton, Ore.) product the retailer will sell.
The footwear retailer said they expect the Nike products they sell to decrease “meaningfully” mainly due to Nike’s expansion of its DTC strategy. Specifically, Foot Locker says Nike is anticipated to account for 60 percent of Foot Locker’s total purchases, down from 70 percent in 2021. After the announcement, Foot Locker shares dropped nearly 30 percent, CNBC reports.
Foot Locker also said it anticipates same-store sales to fall by 8 to 10 percent and sales to fall by 4 to 6 percent in 2022.
Nike is currently Foot Locker’s largest supplier.