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Athleticwear and sports retailers report poor Q4, annual earnings

Retail Brew

Many retailers are reporting their shopping season and/or annual earnings, and for the most part, things aren’t looking so great for the major athletic-apparel retailers.

Nike, which reports its earnings Tuesday afternoon, is the subject of much debate among analysts, who often look to the retailer when assessing the health of companies in the athleticwear and footwear space. Although the company’s shares have risen 16% over the past six months, Nike might not be meeting expectations when it comes to its DTC business, which many do expect to grow stronger in the long term.

  • Those bullish on Nike hope the company not only beats earnings expectations but is able to provide positive guidance.

For other athleticwear and sports retailers, the results are in…

Foot Locker: Speaking of Nike, Foot Locker CEO Mary Dillion reaffirmed its relationship with the brand, telling investors during a Monday call that, “The fruits of our renewed commitment to one another will begin to show up in holiday this year as we build increasing momentum to 2024 and the 50th anniversary of Foot Locker.”

  • This proclamation came on the heels of posting holiday-quarter sales that came in at $2.34 billion, slightly less on a YoY basis.

Adidas: The German sportswear company has faced numerous headwinds, most notably the termination of its partnership with Ye. The company also has a new CEO after  Kasper Rorstead left and was replaced with Bjørn Gulden at the start of this year.

  • Adidas’s revenue increased 6% in 2022, but net profits fell 83%. In Q4, the aftermath of the Yeezy fallout, revenue slowed dramatically to ~$519 million USD.