Blog: Foot Locker stumbles
Leonie Barrie | 21 November 2007
Foot Locker has been plagued by sale rumours this year amid a steady decline in its performance, and just four months ago confirmed it had hired Lehman Brothers to evaluate strategic alternatives, including offers from private equity firms. It also said back in July that it planned to close up to 250 stores in an attempt to boost profitability.
Today, though, store closures have been elevated to 300 – suggesting the New York based retailer is having a more difficult time in the US than had previously been thought. The cost of these closures has pushed the athletic footwear firm to a third quarter loss of $33m, compared with a profit of $65m a year earlier.
Foot Locker is also blaming challenging market conditions and a lack of exciting fashion trends in athletic footwear and apparel for its woes. So let’s hope the retailer can learn something from its House of Hoops venture with Nike, which I blogged yesterday. It sees this new venture as a growth opportunity in the premium athletic footwear and apparel sector. And since the stores are specifically aimed at enhancing the consumers’ experience, maybe Foot Locker can learn something to apply to those shops it has decided to keep.
Some of just-style’s more eagle-eyed readers might have noticed a small change to the menu bar on the homepage: the addition of the word re:source. Yes it might be a small change – but it marks the co...
Over the past week just-style has continued to try to unravel the potential ramifications of Donald Trump’s election as the next president of the United States....
One event dominated the international airwaves last week, and on just-style too we took a closer look at the surprise election of Donald Trump as the 45th president of the United States....
As the Brexit roller-coaster continues to twist and turn, and the US presidential election campaign nears its unpredictable and possibly protectionist end, there's no doubt these events – and the perc...
- Steps to piloting living wage in garment factories
- How to ensure sustainability is more than a slogan
- Trump blows the case for Brexit out of the water
- US apparel retailers' November 2016 sales roundup
- Duty-free trade key to build Africa supply chains
- US Q3 in brief – Destination Maternity, Cherokee
- Esquel efficiency drive continues to boost brands
- Taiwan textile maker investing in first US plant
- Outdoor apparel sector set for double-digit growth
- Myanmar garment industry "lacking labour rights"