Foot Locker’s struggles may stem from lack of ‘innovative new products’

The sporting goods industry got kicked around on Friday — thanks to a disastrous second-quarter performance by Foot Locker.

The sneaker and apparel chain missed estimates on profits, revenue and margins — and investors, scared that the long-running athletic footwear bull market was weakening, ran away from rival Finish Line and Genesco, and from Nike and Under Armour.

“We are obviously not satisfied with these results,” Foot Locker CEO Richard Johnson said Friday on a call with analysts.

Foot Locker shares tumbled 28 percent on Friday, to $34.37, after bouncing off a 52-week low earlier in the session.

They are now down 51 percent this year and 2 percent over the last five years.

The New York chain said same-store sales fell 6 percent from last year — the first such decline since 2009, according to Citi Research.

The lack of “innovative new products” pressured sales, Johnson said, noting that it is becoming more difficult to get huge crowds to line up for new shoe launches.

“The fact is that today’s kid really needs it to be connected to story,” Johnson said, noting that a typical Saturday launch will not generate huge lines.

With Johnson’s words hanging in the air, Nike shares fell 4.4 percent, to $54.95, Under Armour shares eased 3.9 percent, to $15.65, and Genesco dropped 8.6 percent, to $23.90.

“The primary driver of the sales issues are, in our view, due to a lack of compelling product from Foot Locker’s largest vendor (Nike),” Scott Krasik of Buckingham research wrote in a note Friday.

Sales of compelling products require “compelling experiences” for customers — such as an in-store event — in Johnson’s mind.

“For that reason, we do not believe our vendors selling product directly on Amazon is an imminent threat,” Johnson said, referring to premium $100-plus sneakers.

But investors weren’t buying Johnson’s narrative as the stock continued to sell off throughout the day.

Foot Locker’s adjusted second-quarter earnings of 62 cents a share were well below Wall Street’s expectation of 90 cents.

Margins were crushed, easing to 29.6 percent from 33 percent a year ago.

The 3,359-store chain also said it would be “aggressive as necessary” in reviewing its store fleet, adding that it would be closing more than the 100 stores announced earlier this year.

“In the near-term, management needs to work to regain its credibility with investors and FL becomes largely a show-me stock for the next two…

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