The top losers in the S&P 500 on August 18, 2017, were:
Footlocker, an American sportswear and footwear retailer, fell on Friday and was the S&P 500’s biggest loser. A weaker-than-expected second quarter fiscal 2017 earnings report along with the weak trend in high-end sneakers weighed on Footlocker stock on Friday.
In 2Q17, Footlocker’s EPS (earnings per share) was $0.62 per share—less than analysts’ forecast of $0.9 per share. The company’s revenue in the second quarter was $1.701 billion—less than the forecasted revenue of $1.8 billion. Footlocker’s same-store sales missed the forecast of a 1% increase by a wide margin and fell 6% year-over-year in the second quarter.
According to Richard Johnson, Footlocker’s CEO and chairman, some of the top styles didn’t reach management’s sales expectations. Lower sales impacted the company’s poor second quarter performance. Johnson also added that a lack of innovative products hurt Footlocker’s performance. Commenting on the outlook, Johnson said that the industry’s weak sales trend is expected to last in 2017. He expects comparable sales to fall 3%–4% in the rest of the year.
Selling was also observed in Footlocker’s peers Nike and Under Armour on Friday. Footlocker fell 27.9% on August 18 and closed the day at $34.38—the lowest close since October 2013.