(Finance) – The title of Foot Lockera US company specializing in the sale of sportswear and footwear, is collapsed on Wall Street after the retailer said it expects revenue to drop in 2022 since it will not be able to sell the same number of products as its main supplier, Nike. In the three months ending January 29, 2022, theNet income of Foot Locker fell to $ 102 million, or $ 1.02 per share, from $ 123 million, or $ 1.17 per share, a year ago. Excluding one-time items, it earned $ 1.67 per share, surpassing analysts’ estimated $ 1.44. The sales they increased by 6.9% to 2.34 billion dollars, against 2.19 billion dollars for the year and the 2.33 billion dollars expected.
Starting in the fourth quarter of 2022Foot Locker provides that no supplier will account for more than 55% of total revenuedown from 65% in the fourth quarter of 2021. As a result, no single supplier is expected to account for more than about 60% of total purchases for fiscal year 2022, down from 70% in 2021 and 75% in 2020 . “This change reflects the accelerated strategic shift to direct-to-consumer (DTC) sales from one of the company’s suppliers and Foot Locker’s ongoing commitment to diversify its brand, “reads a statement.
“We still have access to all of these products. We will only see different quantities flowing our way“said theCEO by Foot Locker Richard Johnson during the call with analysts. The company said it expects comparable sales to drop 8% to 10% in fiscal year 2022, estimating an adjusted profit of between $ 4.25 and $ 4.60 per share. Analysts had expected $ 6.49 per share on average.
Goes down Foot Locker with prices lined up at 27.67 for one 33.18% drop. The higher expectations see an extension of the downside towards the support area estimated at 25.63 and subsequently at 23.58. Resistance at 30.45.