Foot Locker Inc FL shares are trading lower by 5.4% to $30.58 during Friday's session. Shares of footwear and athletic apparel stocks are trading lower in sympathy with Nike, which fell after reporting mixed second-quarter results, lowering its outlook and announcing cost savings plans.
What Happened With Nike?
Nike outperformed predictions in earnings per share by 18 cents, reaching $1.03, a 21.18% increase from the previous year. However, their revenue fell slightly below expectations at $13.39 billion compared to an expected $13.43 billion, though it did show a 0.55% rise from the same period last year.
On a bright side, the company's gross margin expanded by 170 basis points, reaching 44.6%...Read More
Why This Matters To FL Investors
Foot Locker is in the same industry as Nike, selling footwear and athletic apparel. When a market leader like Nike experiences a dip in its stock price due to mixed results, it can create a ripple effect across the sector.
Investors might perceive challenges faced by Nike as potentially affecting other companies in the industry, thus causing them to sell shares in related businesses like Foot Locker.
See Also: UK On The Brink Of Recession While US Growth Remains Robust
According to data from Benzinga Pro, Foot Locker has a 52-week high of $47.22 and a 52-week low of $14.84.
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