Web Analytics Made Easy - Statcounter

FL: Explosive Growth in Nike Campaigns Predicts Reduced Outlook, Gross Margins

   01 Sep 2023

Foot Locker reported a net loss of $5 million compared to net income of $94 in the same quarter last year. Gross margin declined by 4.6% year-over-year.  The Company cited “an increase in promotional activity, which included higher markdowns.” The full-year financial outlook was lowered for the second consecutive quarter, including the gross margin outlook which was lowered in part due to “more aggressive markdowns.” The Company also announced it was pausing its dividend after the next dividend payment in October.


  • Foot Locker (FL) sent record volumes of “Nike” focused promotions in July. We have tracked a 67% year-over-year increase in email volumes containing “Nike” for the May-July period.
  • FL steep discount category was flat for much of hte year, before exploding 200% high this July.
  • Rises in total promotional activity and steep discounts have strong relationshship to declining margins and are consistent with the whopping 460 basis point decline reported this am.

Share :

Related Projects