The Bad News for Nike in Foot Locker's Sales Update
Nike (NYSE: NKE) won't announce its fiscal first-quarter results until late September, but investors already have some valuable clues about what to expect in that report. Foot Locker (NYSE: FL), which counts the sports apparel titan as its biggest supplier, just issued an operating update ahead of its official quarterly announcement in late August.
The report showed a quick return to growth for the industry following the store closures that started in March. But there was some bad news around pricing and inventory that could mean profitability pressures ahead for Nike.
Foot Locker revealed that comparable-store sales returned to positive territory in May, June, and July. Comps were up roughly 18% in Q2, while they had plunged by over 40% during the most intense period of stay-at-home orders in March and April.
Source Fool.com
