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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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Crow-Armstrong stays hot vs. hometown Dodgers

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Crow-Armstrong stays hot vs. hometown Dodgers

CHICAGO — Most players are happy to be done facing the Los Angeles Dodgers, but Chicago Cubs center fielder Pete Crow-Armstrong might not be one of them.

The Los Angeles native has torched his childhood team this season, including Wednesday night at Wrigley Field when he went 3-for-4 with a home run, two stolen bases and a career-high four RBIs, helping the Cubs to a 7-6 win. It came one night after Chicago beat L.A. 11-10, with Crow-Armstrong contributing another home run.

He was asked Wednesday whether his production has special meaning coming against the team he used to root for.

“Absolutely,” he said. “I mean, they are regarded as the best, and I think we’ve enjoyed being able to show that we’re right there with them, and yeah, it’s always a little extra special for me getting to do it against the team I grew up going to see.”

Crow-Armstrong erased a 2-0 Cubs deficit with an opposite-field, three-run homer in the fourth inning, then added a run-scoring single an inning later, which turned out to be the final run of the night for the Cubs.

Overall, he had four home runs and nine RBIs in the seven-game season series against the Dodgers, which the Cubs won 4-3 after losing the first two games in Japan in mid-March. But that was before the Cubs’ offense took off. They’re averaging an MLB-high 6.3 runs per game.

Crow-Armstrong’s season took off as well, starting over a week ago when the teams met in Los Angeles. In the 10 games since, the 23-year-old is hitting .400 with five home runs.

“He needs to send me a bottle of wine or some golf balls with all the success he’s had,” Dodgers manager Dave Roberts quipped before Wednesday’s game.

Roberts and Crow-Armstrong exchanged pleasantries before the first game of the series, as the second-year player is friends with Roberts’ son, Cole. The two played against each other growing up.

“I got a couple different connections to Doc,” Crow-Armstrong said. “He’s so great.”

That’s the same word Crow-Armstrong’s teammates are using about him as he continues to impress both at the plate and in the field. According to ESPN Research, he’s the fastest player in Cubs history to reach five home runs and 10 stolen bases, doing it in 26 games.

Plus, his pitchers love seeing him patrol center field.

“Defensively, I got to say he’s probably the best,” Wednesday’s starter, Matthew Boyd, said. “And what he’s doing at the plate is no surprise.”

Crow-Armstrong showed signs of breaking out late last year but then struggled early this season before locking in during the Cubs’ most recent road trip. He said he got “on-time” with his swing while learning how to deal with failure better. He was asked how satisfied he is with his game right now.

“If it comes out in a win, it’s very satisfactory,” he said. “It makes me feel very content. I love being able to impact it in any way I can.”

So does his manager, who called Wednesday a “wonderful game” for Crow-Armstrong.

“He made his presence felt in a big way for sure,” Craig Counsell said.

Crow-Armstrong is quickly becoming a fan favorite, as the Cubs faithful are taking to his aggressive style of play. He was asked what it’s like to hear his name chanted when he comes to the plate after producing in previous at-bats.

“I’ve tried to tune that out,” he said with a laugh. “I was actually thinking about it yesterday and I was like, I got to be 0-for-20 when they’ve chanted my name. But they continue to chant and they get behind every one of us and it’s the coolest thing.”

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Dodgers’ Snell to pause throwing after discomfort

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Dodgers' Snell to pause throwing after discomfort

CHICAGO — Los Angeles Dodgers starter Blake Snell will back off his throwing program as he continues to recover from left shoulder inflammation, according to manager Dave Roberts.

“As he was playing catch, he just didn’t feel great,” Roberts said Wednesday afternoon before the Dodgers played the Chicago Cubs. “Right now, we’re going to slow play the throwing. Will probably get it looked at again when we get back home.”

Snell, 32, has been on the injured list since early April after making just two starts for the Dodgers. He signed a five-year, $182 million contract this past offseason.

Snell, who was set to throw a bullpen session Wednesday, felt discomfort in the shoulder while playing catch Tuesday. Roberts was asked how concerning the latest setback was.

“I wouldn’t say concerning because part of the messaging from us to Blake is, it’s about later on in the season and if there’s any type of discomfort, let’s not try to fight through it,” Roberts responded.

Snell is one of several Dodgers pitchers on the mend, including left-hander Clayton Kershaw, who pitched three innings in a minor league start Tuesday, his second rehab outing this spring.

“Velocity was good,” Roberts said. “Got into the fourth inning. He’ll make a start next week. Really positive stuff.”

The Dodgers also received positive news about right-hander Tyler Glasnow after he left his last start with leg cramps. His latest bullpen session went well, according to Roberts.

Meanwhile, Shohei Ohtani is throwing again after missing time on the paternity list. He’ll have another bullpen session Saturday as he recovers from elbow surgery, though the team still doesn’t have a timetable for his return to major league action.

The team was also without catcher Will Smith on Wednesday after he injured his wrist on a play at the plate in Tuesday’s loss to the Cubs.

“As he made the tag, his [left] wrist turned in and so there’s some residual soreness,” Roberts said.

Smith could get imaging done when the team returns to Los Angeles, but Roberts wasn’t overly concerned about the injury.

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Rangers’ Seager goes on IL with hamstring strain

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Rangers' Seager goes on IL with hamstring strain

WEST SACRAMENTO, Calif. — The Texas Rangers placed shortstop Corey Seager on the 10-day injured list Wednesday because of a strained right hamstring.

Seager, 30, pulled up while running to first base in the sixth inning Tuesday at the Athletics and left the game. He started 21 of Texas’ first 23 games this season and is hitting .286 with four home runs and six RBIs. Seager has a team-high 17 hits since April 8.

The Rangers also called up infielder Nick Ahmed and designated left-handed pitcher Walter Pennington for assignment. Ahmed, 35, is seeking to appear in a major league game for the 12th consecutive season. He has played for Arizona (2014-23), San Francisco (2024), the Los Angeles Dodgers (2024) and San Diego (2024).

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