Foot Locker Depends on Nike Inc., Makes Up Two-Thirds of its Sales in 2017

In its annual report, Foot Locker stated that 67% of its merchandise in 2017 was purchased from Nike Inc. (that includes Jordan Brand and Converse), down from 68% in 2016.

According to SGB Media, Foot Locker said each of its operation divisions is highly dependent on Nike; individually, they purchases 44% to 73% of their merchandise from Nike during 2017.

Additionally, Foot Locker said it purchased approximately 93% of its merchandise in 2017 from just five suppliers, up from 91% in 2016. The only other brands, besides Nike, mentioned in the annual report were adidas and Puma.

According to Foot Locker, Inc.’s 2017 fiscal year results, sales were $7.782 billion, an increase of 0.2% from sales in 2016, and the most in the company’s history as an athletic business. However, net income decreased to $284 million in 2017 ($2.22 per share), down from $664 million ($4.91 per share) in 2016. The company was highly profitable in 2017.

During the fourth quarter, Foot Locker, Inc. opened 28 new stores, remodeled or relocated 45 stores, and closed 67 stores. According to the company, as of February 3, 2018, the company operated 3,310 stores in 24 in North America, Europe, Australia, and New Zealand. In the Middle East, 98 franchised Foot Locker stores were operating, as well as 14 franchised Runners Point stores in Germany.

Foot Locker, Inc.’s stores include Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports Footaction, Runners Point, Sidestep, and SIX:02. The company also operates Eastbay.

You can learn more by checking out the full Foot Locker, Inc. 2017 fourth quarter and full year results.

foot locker hollywood and highland 7

Foot Locker’s Flagship Hollywood and Highland store. Photo via Foot Locker.

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2 Comments

  1. This is a bad thing. Most of the time I go into Foot Locker their selection of Adidas/Under Armour/Etc is truly pathetic. I cant buy what’s not there. Choice is nice. Having a monopoly isn’t cool. I probably would’ve spent thousands of dollars extra at Footlocker if they simply had the products I wanted.

  2. Eh, you walk into a Nike store, and Adidas store, and a UA store, and the bottom line is Nike just flat-out has a bigger selection than the other two. If you go to a Nike outlet, you’re anticipating the possibility of a current signature for the low, or a leftover Retro, or something of the trendy selection (imagine if and when we see 270’s in there…). I’ve never been able to walk out of an Adidas outlet store with a purchase. There’s like nothing exciting apart form contemplating maybe some oddball UB or NMD colorway I’d never honestly want.

    Outlets and retail chains like Footlocker are counting on casual consumer sales. Nike geared up for that. Other brands perhaps didn’t even want their business model like that to start. Just what it is.

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