Footlocker down 33%: sales down 4-6% YoY There is more to it. Nike appears o be bailing on them and that's 2/3 of their revenues.
Excerpts From their CC:
While we seek to provide more variety, our largest vendor is accelerating its DTC strategy. We expect their concentration to decline meaningfully in the fourth quarter this year to a level that will continue into 2023.
We continue to have a strong relationship with Nike, and they remain an important partner for our business, especially in basketball, kids and sneaker culture, where we have an unrivaled connection with our consumers. As we remix our business, 2022 will reflect an acceleration of preexisting strategies that are well underway and have already been yielding success.
Our guidance includes a meaningful vendor mix shift. Beginning in the fourth quarter of 2022 and going forward, we do not expect any one vendor to comprise more than 55% of our product spend. By comparison, this is down from approximately 65% in the fourth quarter of 2021.
This change reflects Nike's accelerated strategic shift to DTC and Foot Locker's ongoing brand and category diversification efforts. For the full year of 2022, this would equate to approximately 60% Nike concentration, down from 70% for 2021 and 75% for 2020. Though we typically don't provide vendor concentration on a quarterly basis, we want to give as much transparency as possible to put our 2022 outlook in context.
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