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Foot Locker’s stock plunged by nearly a third after the sneaker retailer reported dismal earnings in the second quarter that it blamed on “ongoing consumer softness.”

In the latest quarter, Foot Locker’s sales fell 9.9% to $1.8 billion — a sharp drop from the $2.1 billion a year earlier, the company said in its earnings report Wednesday

Foot Locker’s share price tumbled 28% to close at $16.64.

The New York-based retailer, which has nearly 900 outposts across the US, slashed its yearly forecast due to “the still-tough consumer backdrop,” and now expects sales to decline 8% to 9% for the year. It originally predicted sales would be down 6.5% to 8%.

“We did see a softening in trends in July and are adjusting our 2023 outlook to allow us to best compete for price-sensitive consumer,” Foot Locker chief Mary Dillon said in a statement.

The footwear chain slashed its yearly earnings outlook to between $2 and $2.25 per share — down from the $3.35 to $3.65 a share it originally predicted and well below the $3.47 analysts were expecting.

A day earlier, Macy’s shares dropped after it posted declining sales in its second-quarter earnings, which it attributed to declining consumer spending and increased credit card delinquencies

Macy’s net sales fell to $5.1 billion in the 13-week period ended July 29 — down from the $5.6 billion reported in the same period last year.

In-store sales at Macy’s 500-plus locations also dropped 8% and digital sales declined 10% compared with the year-ago period, sending Macy’s share price tumbling over 14%, to $12.57 on Tuesday.

Macy’s said there were particular challenges in the active, casual and sleepwear categories, while beauty products and fragrances performed better.

In addition, other revenues — such as earnings from credit interest and other non-operating revenues — decreased $84 million from the prior year period, to $150 million.

The New York City-based department store chain attributed the losses to “credit card revenues which were negatively impacted by an increased rate of delinquencies.”

Customers paying their credit card bills on time is viewed as a proxy for consumer health, and an increased number of defaulted payments is an indicator that consumers will have to prioritize bills over shopping.

“In light of ongoing macroeconomic pressures and uncertainty on when those will abate, the company continues to take a cautious approach on the consumer,” Macy’s earnings report said.

The department store’s chairman and chief executive, Jeff Gennette, reaffirmed the retailer’s cautious outlook on consumer spending in an earnings call with investors on Tuesday, “especially at Macy’s where roughly 50% of the identified customers have an average household income of $75,000 or under,” he said.

“We have seen the Macy’s customer more aggressively pull back on spend in our discretionary categories. They are not converting as easily and becoming more intentional on the allocation of their disposable income with an ongoing shift to services and experiences,” he added.

Macy’s has been underperforming in the stock market this year. Its stock has fallen more than 37% year to date.

In yet another example of softening consumer spend, Target said its quarterly sales fell for the first time in six years.

Sales at stores and digital channels open for at least a year were off 5.4% from a year earlier, according to Targets earnings report released last week, while digital sales slipped 10.5%.

Though Target’s longtime CEO Brian Cornell attributed part of the losses to “the impact of inflation,” CFO Michael Fiddelke added that boycotts of the retailer’s controversial “Pride” collection also contributed to the quarter’s results.

Dick’s Sporting Goods also missed analyst forecasts for the second quarter, reporting a 23% drop in profits across its more than 700 stores nationwide — despite sales rising 3.6%. 

Dicks attributed the losses to organized retail crime and our ability to effectively manage inventory shrink, an industry term used to describe stolen or lost merchandise.

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Labour dealt historic loss in Caerphilly by-election – as Plaid Cymru win seat

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Labour dealt historic loss in Caerphilly by-election - as Plaid Cymru win seat

Plaid Cymru have won the by-election in the Senedd seat of Caerphilly for the first time.

The Welsh nationalist party secured 15,960 votes – and candidate Lindsay Whittle cried as the result was announced.

Mr Whittle is 72 years old and had stood as a Plaid candidate 13 times since 1983. He will now hold the seat until the Senedd elections next year.

This by-election was widely regarded as a two-horse race between Plaid Cymru and Reform UK, and the result marks a considerable blow for Nigel Farage.

Analysis: Reform candidate looked neglected and dejected


John Craig

Jon Craig

Chief political correspondent

@joncraig

In a by-election in the birthplace of the comedian Tommy Cooper, it was Plaid Cymru that had the last laugh.

During the campaign, Nigel Farage and Reform UK’s candidate Llyr Powell had posed for photos in front of the statue of the legendary comic in Caerphilly.

But when the result was declared at 2.10am at the count in the town’s leisure centre, Mr Farage – who’d been campaigning for Mr Powell on polling day – was nowhere to be seen.

In fact, the joke among Plaid supporters at the count was that long before the declaration Mr Farage was halfway down the M4 on his way back to London.

Read Jon’s full analysis here.

His candidate Llyr Powell received 12,113 votes – denying a victory that would have strengthened claims that Reform can convert a large lead in opinion polls into election wins.

Nonetheless, the party’s performance is a marked improvement on 2021, when it received just 495 votes.

More than anything, the result is a humiliating and historic defeat for Labour, who had held Caerphilly at every Senedd election since it was created in 1999 – as well as the Westminster seat for over a century.

Its candidate Richard Tunnicliffe secured 3,713 votes and finished in third place, with Welsh Labour describing it as a “by-election in the toughest of circumstances, and in the midst of difficult headwinds nationally”.

Turnout overall stood at 50.43% – considerably higher than during the last ballot back in 2021.

Giving his acceptance speech after the result was confirmed, Mr Whittle described how he had been “absolutely heartened” by how many young people were involved in the by-election – and said the result sends a clear message.

He said: “Listen now Cardiff and listen Westminster – this is Caerphilly and Wales telling you we want a better deal for every corner of Wales. The big parties need to sit up and take notice.

“Wales, we are at the dawn of new leadership, we are at the dawn of a new beginning – and I look forward to playing my part for a new Wales, and in particular, for the people of the Caerphilly constituency. I thank you with all my heart.”

Mr Whittle quipped Plaid’s victory “was better than scoring the winning try for Wales in the Rugby World Cup”.

And looking ahead to the next year’s elections, he added: “[This] result shows what’s possible when people come together to back practical solutions and protect what matters most.

“We’ve beaten billionaire-backed Reform and, with the same determination, we can do it again in May 2026. Caerphilly has shown the way – now Wales must follow.”

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Plaid Cymru leader Rhun ap Iorwerth has everything to celebrate after winning the Caerphilly by-election.

Plaid Cymru leader Rhun ap Iorwerth told Sky News his party’s victory is the “start of a reset of politics in Wales”.

He said Plaid’s goal is to take over the Senedd for the first time in May next year.

“I want to see that through now. I’ve made it clear, said it in my conference speech a couple of weeks ago, we have to replace Labour,” he said.

“And it’s not just for its own sake, it’s so we get better outcomes for Wales. That’s what Plaid Cymru’s always about.”

Labour minister labels result ‘disappointing’

Cabinet Office minister Nick Thomas-Symonds told Sky News that “frustrations” with the “pace of change” led to Labour’s loss.

“I’m not shying away from, how disappointing the result is,” he said.

“What I found on the doorsteps was a real desire for more change, a frustration about the pace of change. That was coming through to me very strongly when I was speaking to people, I think that’s been reflected in the result.”

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Labour ‘not shying away’ from loss

Labour’s deputy first minister in the Senedd, Huw Irranca-Davies, said the prime minister must “get back to bread and butter things” such as the cost of living, instead of focussing on immigration.

“We’ve got to get better,” he said.

“If it turns out as we think, as the polls have shown tonight, after a really good campaign with a really good Labour candidate in Richard, then we’ve got to talk about how do we get back to bread and butter things: cost of living, the state of the local community, the high street, the green spaces, the money in people’s pockets.

“And that’s a task for both Welsh Labour and UK Labour as well.”

First Minister Eluned Morgan congratulated Mr Whittle on his return to the Senedd and said: “We take our share of the responsibility for this result. We are listening, we are learning the lessons, and we will be come back stronger.”

Reform’s chair David Bull suggested the party’s strong performance in the polls cost them the by-election to Plaid Cymru.

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‘Extraordinary’ result for Reform

“I actually think the problem for us was the MRP poll, which was released two or three days ago,” he told Sky News.

“It showed us on 42%, Plaid on 38%, and it changed some people’s minds. I’ve heard tales from Lib Dem supporters, even Tories, actually voting tactically for Plaid to keep us out.”

Nigel Farage added that Reform’s candidate lost to “a party that people know well and to a popular local politician”.

“The Senedd elections next year are a two-horse race between Reform UK and Plaid Cymru,” he said.

The Conservatives and the Liberal Democrats were among the parties that lost their deposits.

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At least 25 killed as bus bursts into flames after crash with motorbike in India

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At least 25 killed as bus bursts into flames after crash with motorbike in India

A passenger bus burst into flames after a motorbike crashed into it, killing at least 25 people and injuring several others in southern India.

A fire ripped through the bus within minutes early on Friday, trapping dozens of passengers as it sped along a highway near Kurnool district in Andhra Pradesh state.

Some people managed to break windows, leaping to safety with minor injuries, while others were charred to death, senior police official Vikrant Patil said.

Volunteers working amid the debris of the bus. Pic: AP
Image:
Volunteers working amid the debris of the bus. Pic: AP

There were 44 passengers on board, most of whom were asleep at the time of the crash.

The bus was gutted and the unidentified bike rider also died, Mr Patil said.

The accident occurred in Chinnatekuru village near Kurnool, around 130 miles (210 kilometres) south of Hyderabad.

The bus was travelling between the cities of Hyderabad in Telangana state and Bengaluru in Karnataka state.

The motorbike rammed into the speeding bus from behind and became stuck, Mr Patil said. It was dragged for some distance, causing sparks that engulfed the bus’s fuel tank.

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“As the smoke started spreading, the driver stopped the bus and tried to put the fire out by using a fire extinguisher, but the fire was so intense he couldn’t control it,” Mr Patil said.

A team of forensic experts was investigating the incident.

India‘s Prime Minister Narendra Modi has offered his condolences to the bereaved families.

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Makers of lift used by Louvre thieves reveal tongue-in-cheek advert

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Makers of lift used by Louvre thieves reveal tongue-in-cheek advert

The makers of the furniture lift used by the Louvre thieves have told Sky News the device is “certainly not intended for burglaries” after publishing a tongue-in-cheek advert making the most of the product’s sudden fame.

Bocker manufactures the Agilo furniture lift that was used in Sunday’s daring daytime heist.

The day after thieves made off with a haul of France’s Crown Jewels worth €88m (£76m), the firm posted a photograph showing the lift inside the police cordon next to the Paris museum with the tagline “when you need to move fast”.

Posted on Instagram, Facebook and LinkedIn, it shows the vehicle’s ladder propped up against the side of the building, telling prospective buyers the lift can carry “up to 400kg of treasures at 42m per minute – as quiet as a whisper”.

CEO Alexander Bocker told Sky News he and his wife, marketing manager Julia Scharwatz, realised their product had been used in the heist when they saw photos from the scene on Sunday afternoon.

“We were shocked that our lift had been completely misused for this robbery, as it is not approved for transporting people,” he said. “And certainly not intended for burglaries.

“Once the initial shock had subsided and it was clear that no one had been injured, black humour took over.

“We brainstormed a bit and played slogan ping pong. My wife finalised it with her marketing team on Monday morning.”

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Moment thieves escape Louvre in jewel heist

Users have generally seen the funny side, with one Instagram comment saying the post “might be the best ad I’ve seen this year” and another suggesting the company deserves “the Oscar for the cleverest advertising”.

Mr Bocker said “99% of the feedback ” has been “thoroughly positive”. “We understand that not everyone shares this sense of humour. Humour rarely, if ever, appeals to everyone, but the vast majority laughed heartily.”

As of Friday afternoon, more than 40,000 people had liked the post on Instagram.

The CEO said his company has had enquiries from around the world and “many congratulations on our successful marketing campaign”.

A police officer swabs the lift for any traces of evidence. Pic: Louvre
Image:
A police officer swabs the lift for any traces of evidence. Pic: Louvre

The lift used by the thieves belonged to one of the firm’s customers, who rents out furniture lifts in the Greater Paris area, he explained.

“During a demonstration on how to use the furniture lift, it was apparently stolen and reported as such by our customer,” Mr Bocker said. “It appears that the company’s branding has been removed and the number plates replaced.”

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The Louvre reopened to visitors on Wednesday, having shut shortly after the heist took place on Sunday morning.

The eight stolen objects remain missing and the thieves, who escaped on motorbikes, are still at large.

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Louvre: How ‘heist of the century’ unfolded

Museum director Laurence des Cars offered to resign when she appeared before French senators on Wednesday, admitting that the four-minute raid was a “terrible failure” and that the site’s security cameras, which do not offer full coverage of the building’s facade, were inadequate.

It came just months after employees went on strike, warning of chronic understaffing and under-resourcing, and saying there were too few eyes on too many rooms.

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