Foot Locker fell sharply on the stock exchanges in New York on Wednesday. The American sports shoe chain saw sales decline in the past quarter. The company also lowered its full-year profit forecast again.
Due to the high inflation and uncertain economy, consumers are keeping their purse strings, according to the company.
Foot Locker lost more than a third of its stock market value. Consumer reluctance has forced the retailer to price its products more aggressively to boost demand and reduce inventories. In addition to the disappointing results, investors were shocked by the announcement that the dividend would be suspended.
Peloton (minus 20.8 percent) also suffered. The manufacturer of exercise bikes and associated training programs suffered more losses than expected last quarter. The number of subscribers to the training programs also decreased compared to a quarter earlier, and expectations for the current quarter were disappointing.
Investors appreciated Kohl’s results (plus 1.5 percent). The American department store chain made more profit than expected and saw its inventories decrease.
The shares of many retail companies were under considerable pressure the day before. For example, the seller of sports and outdoor items, Dick’s Sporting Goods, saw almost a quarter of its market value evaporate on Tuesday after a profit alarm. Dick’s Sporting Goods was removed from the buy list by analysts from Bank of America and fell more than 4 percent on Wednesday.
The major sporting goods brand, Nike, had its most extended loss series on Tuesday since its stock market debut in 1980. The share closed lower for the ninth trading day in a row. On Wednesday, the share lost almost 4 percent due to the disappointing results of Foot Locker, which sells many Nike items in its stores.
Investors are also looking forward to the results of Nvidia, which will be released after the closing bell on Wall Street. The American chip producer is a significant player in artificial intelligence (AI) and has already risen in value this year. Shortly after the start of trading, the Dow Jones index was 0.2 percent higher at 34,355 points. The broad S&P 500 rose 0.4 percent to 4,404 points. The Nasdaq also rose 0.4 percent to 13,560 points. The tech indicator has already risen about 30 percent this year. The rally was driven by the optimism surrounding AI companies such as Nvidia.