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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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Harvey Weinstein retrial: ‘He had all the power,’ prosecutor tells court as opening statements begin

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Harvey Weinstein retrial: 'He had all the power,' prosecutor tells court as opening statements begin

The retrial of Harvey Weinstein has begun in New York – with a prosecutor telling the court the former Hollywood mogul used “dream opportunities as weapons” to prey on the three women accusing him of sexual abuse.

The case is being retried five years after the landmark #MeToo case against the producer, who was once one of the industry’s most powerful figures, after the appeals court last year overturned his conviction.

Weinstein, who is now 73, is charged with raping one woman and forcing oral sex on two others. He has strenuously denied the allegations.

Following a lengthy jury selection process due to the high-profile nature of the retrial, the prosecution has now opened its case at the same courthouse in Manhattan.

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Why is Weinstein getting a retrial?

Attorney Shannon Lucey told the court the Oscar-winning producer and studio boss used “dream opportunities as weapons” against the female accusers.

“The defendant wanted their bodies, and the more they resisted, the more forceful he got,” she said.

Weinstein had “enormous control over those working in TV and film because he decided who was in and who was out,” the court heard. “He had all the power. They had none.”

Dressed in a dark suit and navy tie, Weinstein listened to the prosecution’s statement after arriving in court in a wheelchair, as he has done for his recent appearances.

His lawyers are expected to outline their case later on Wednesday.

Harvey Weinstein appears in state court in Manhattan in his retrial on Wednesday, April 23, 2025 in New York. (Steven Hirsch /New York Post via AP, Pool)
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Steven Hirsch/ New York Post via AP/ pool

The opening statements got under way after the last jurors were finally picked on Tuesday, more than a week after the selection process began.

Prospective jurors were questioned about their backgrounds, life experiences and various other points that could potentially impact their ability to be fair and impartial about a case that has been so highly publicised. They have also been asked privately about their knowledge of the case and opinions on Weinstein.

Seven men and five women have been chosen to hear the trial.

Why is there a retrial?

In 2020, Weinstein was sentenced to 23 years in prison after being found guilty of charges of sexual assault in 2006 and rape in 2013, relating to two women.

But in April 2024, New York’s highest court overturned the convictions due to concerns of prejudicial testimony and that the judge in the original trial had made improper rulings.

Prosecutors announced a retrial last year and a separate charge concerning a third woman, who was not part of the original trial, has since been added to the case. She alleges the producer forced oral sex on her at a hotel in 2006.

Weinstein has pleaded not guilty to all charges and denies raping or sexually assaulting anyone.

Read more:
What has happened to the #MeToo movement?
Harvey Weinstein sues his brother Bob

At a preliminary court hearing in January, he begged for the retrial to be held as quickly as possible due to his deteriorating health, telling the judge: “I don’t know how much longer I can hold on.”

Weinstein was also sentenced in February 2023 after being convicted of rape during a separate trial in LA – which means that even if the retrial ends in not guilty verdicts on all three counts, he will remain behind bars.

His lawyers are also appealing this sentence.

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Politics

Robert Jenrick vows to ‘bring coalition together’ to end Tory-Reform fight

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Robert Jenrick vows to 'bring coalition together' to end Tory-Reform fight

Robert Jenrick has vowed to “bring this coalition together” to ensure that Conservatives and Reform UK are no longer fighting each other for votes by the time of the next election, according to a leaked recording obtained by Sky News.

The shadow justice secretary told an event with students last month he would try “one way or another” to make sure Reform UK and the Tories do not compete at another general election and hand a second term in office to Sir Keir Starmer in the process.

In the exclusive audio, Mr Jenrick can be heard telling the students he is still working hard to put Reform UK out of business – the position of the Tory leader Kemi Badenoch.

Conservative Party leadership candidate Robert Jenrick delivers a speech during the Conservative Party Conference at the International Convention Centre in Birmingham.  Picture date: Wednesday October 2, 2024. PA Photo. See PA story POLITICS Tories. Photo credit should read: Jacob King/PA Wire
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Shadow justice secretary Robert Jenrick. Pic: PA

However, more controversially, the comments also suggest he can envisage a time when that position may no longer be viable and has to change. He denies any suggestion this means he is advocating a Tory-Reform UK pact.

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The shadow justice secretary came second to Mrs Badenoch in the last leadership contest and is the bookies’ favourite to replace her as the next Conservative leader.

Mr Jenrick congratulate Ms Badenoch on her win. Pic: PA
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Robert Jenrick lost the Tory leadership contest to Kemi Badenoch. Pic: PA

Speaking to the UCL Conservative association dinner in late March, he can be heard saying: “[Reform UK] continues to do well in the polls. And my worry is that they become a kind of permanent or semi-permanent fixture on the British political scene. And if that is the case, and I say, I am trying to do everything I can to stop that being the case, then life becomes a lot harder for us, because the right is not united.

“And then you head towards the general election, where the nightmare scenario is that Keir Starmer sails in through the middle as a result of the two parties being disunited. I don’t know about you, but I’m not prepared for that to happen.

“I want the right to be united. And so, one way or another, I’m determined to do that and to bring this coalition together and make sure we unite as a nation as well.”

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This is the furthest a member of the shadow cabinet has gone in suggesting that they think the approach to Reform UK may evolve before the next general election.

Last night, Mr Jenrick denied this meant he was advocating a pact with Reform UK.

Sir Keir used Prime Minister’s Questions on Wednesday to accuse Ms Badenoch of having “lost control of her party” and said Mr Jenrick and Reform leader Nigel Farage are “cooking up their joint manifesto”.

“The member for Clacton (Mr Farage) is going to do what he always does – eat the Tory party for breakfast,” he added.

Read more:
Badenoch dismisses ‘threat’ from Jenrick
Your ultimate guide to the local elections

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PM ‘doesn’t know what he believes’

A source close to Mr Jenrick said: “Rob’s comments are about voters and not parties. He’s clear we have to put Reform out of business and make the Conservatives the natural home for all those on the right, rebuilding the coalition of voters we had in 2019 and can have again. But he’s under no illusions how difficult that is – we have to prove over time we’ve changed and can be trusted again.”

Mrs Badenoch has said in interviews that she cannot see any circumstances in which the Tories under her leadership would do a deal with Reform UK.

Richard Fuller, the Conservative’s shadow chief secretary to the Treasury, insisted to Sky News Mr Jenrick was not talking about a coalition, but meant if you divide up “the right” then “you end up with a far left government” and “we want to make sure we don’t repeat that mistake”.

Reform UK leader Nigel Farage during a press conference in Sandy Park Stadium.
Pic: PA
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Reform UK leader Nigel Farage. Pic: PA

Reform UK’s deputy leader Richard Tice told Sky News “competition is a good thing” and for people who do not want to vote for Labour, “they’ve got to vote for common sense, courage and leadership, and you only get that from Reform UK”.

“Frankly, they [the Conservatives] should disappear into sort of yester-year,” he said.

“And we are at a once in a century moment where a new party is taking over from the Conservatives.”

Mr Tice added: “Robert, you’re saying some good things on justice. But you’re in the wrong party, chap.”

Chair of the Labour Party, Ellie Reeves, said: “I think people have the right to know what they’re voting for when they go to the polls, are they voting for a coalition of chaos or voting Conservative, getting Reform, voting Reform, getting Conservative?

“These grubby backroom deals Jenrick seems to be talking about, they need to come clean about it, Badenoch needs to come clean about it.”

In next week’s local elections, Reform UK will compete directly against the Tories in a series of contests from Kent to Lincolnshire. At last year’s general election, in more than 170 of the 251 constituencies lost by the Conservatives the Reform vote was greater than the margin of the Tories’ defeat.

Today’s YouGov/Sky voting intention figures put Reform UK in front on 25%, Labour on 23% and the Conservatives on 20%, with the Lib Dems on 16% and Greens on 10%.

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Politics

Robert Jenrick’s leaked plan for Reform

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Robert Jenrick's leaked plan for Reform

👉Listen to Politics at Sam and Anne’s on your podcast app👈

With news overnight that a peace conference in London today would be going ahead without UK Foreign Secretary David Lammy or US Secretary of State Marco Rubio, are peace talks over Ukraine going backwards? Sam and Anne discuss what’s going on.

And Rachel Reeves is landing in Washington today for what promises to be one of the most important IMF spring meeting in years – will she make any progress on a trade deal for the UK?

Also, Sam has obtained a leaked recording of former Tory leadership contender Robert Jenrick vowing to “bring this coalition together” to ensure that Conservatives and Reform UK are no longer fighting each other for votes.

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