A roughly 20% slide in shares of Foot Locker Inc. in premarket trade Friday pulled other sports retailers and apparel makers lower with it, with Under Armour down 1.7% and Nike Inc. down 2.7%. Foot Locker reported weaker-than-expected earnings for the second quarter and said it was hurt by the limited availability of new innovative products. Adding to the gloom, Hibbet Sports Inc. also posted worse-than-expected earnings and slashed its guidance. Quo Vadis Capital analyst John Zolidis told investors to avoid companies in the athletic apparel and footwear space. “The fashion trend has turned,” he wrote in an early note. “Athleisure is over. We predict several years of pain for the companies that compete in this arena.” Foot Locker shares have fallen 33% in 2017, while the S&P 500 has gained 8.5%.
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