Nike Inc (NYSE:NKE) shares are trading lower by 3.67% to $97.74 Wednesday morning in sympathy with Foot Locker Inc (NYSE:FL), which reported a second-quarter revenue miss and lowered its guidance.
Nike, like many other brands, relies on retailers like Foot Locker to distribute its products to consumers. If Foot Locker’s revenue is lower than expected and it reduces its guidance, it might suggest weaker consumer demand for athletic footwear and apparel.
This could lead investors to believe that other retailers might also face similar challenges, potentially leading to decreased sales and revenue for Nike.
What Happened?
Foot Locker stock is slumping more than 30% following its second-quarter results and lowered 2023 sales and earnings guidance. The company is also pausing its dividend to enhance flexibility.
FL reported a second-quarter FY23 sales decline of 9.9% year-on-year to $1.86 billion, missing the analyst consensus of $1.88 billion.
Adjusted EPS of $0.04 was in-line with the analyst consensus…Read More
According to data from Benzinga Pro, Nike has a 52-week high of $131.31 and a 52-week low of $82.22.
