The Ratings Game: Foot Locker shares plunge 28% as brands like Nike and Adidas go direct-to-consumer

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Foot Locker says the store experience is one reason why it’s not worried about competition from Amazon.

Foot Locker Inc. says it’s not worried about Amazon, but analysts say it should be. The athletic retailer should also be nervous about the direct-to-consumer actions being taken by some of the biggest names on its shelves.

Foot Locker FL, -6.17% shares plummeted 28% in Friday trading after the company reported a 6% second-quarter same-store sales decline, and a 4.4% year-over-year decrease in sales, to $1.78 billion. The FactSet consensus was $1.80 billion.

In an earnings statement, Foot Locker Chief Executive Richard Johnson reaffirmed the company’s “strong” position in the premium sneaker market and said the company was hurt by “limited availability of innovative new products in the market.

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