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.
Jesse joined ESPN Chicago in September 2009 and covers MLB for ESPN.com.
The last-place Washington Nationals fired president of baseball operations Mike Rizzo and manager Davey Martinez, the team announced Sunday.
Rizzo, 64, and Martinez, 60, won a World Series with the Nationals in 2019, but the team has floundered in recent years. This season, the Nationals are 37-53 and stuck at the bottom of the National League East after getting swept by the Boston Red Sox this weekend at home. Washington hasn’t finished higher than fourth in the division since winning the World Series.
“On behalf of our family and the Washington Nationals organization, I first and foremost want to thank Mike and Davey for their contributions to our franchise and our city,” principal owner Mark Lerner said in a statement. “Our family is eternally grateful for their years of dedication to the organization, including their roles in bringing a World Series trophy to Washington, D.C.
“While we are appreciative of their past successes, the on-field performance has not been where we or our fans expect it to be. This is a pivotal time for our club, and we believe a fresh approach and new energy is the best course of action for our team moving forward.”
Mike DeBartolo, the club’s senior vice president and assistant general manager, was named interim GM on Sunday night. DeBartolo will oversee all aspects of baseball operations, including the MLB draft. An announcement will be made on the interim manager Monday, a day before the club begins a series against the St. Louis Cardinals.
Rizzo has been the top decision-maker in Washington since 2013, and Martinez has been on board since 2018. Under Rizzo’s leadership, the team made the postseason four times: in 2014, 2016, 2017 and 2019. The latter season was Martinez’s lone playoff appearance.
“When our family assumed control of the team, nearly 20 years ago, Mike was the first hire we made,” Lerner said. “Over two decades, he was with us as we went from a fledging team in a new city to World Series champion. Mike helped make us who we are as an organization, and we’re so thankful to him for his hard work and dedication — not just on the field and in the front office, but in the community as well.”
The Nationals are in the midst of a rebuild that has moved slower than expected, though the team didn’t augment its young core much during the winter. Led by All-Stars James Wood and MacKenzie Gore, Washington has the second-youngest group of hitters in MLB and the sixth-youngest pitching staff.
The team lost 11 straight games in a forgettable stretch last month. And during a 2-10 run in June, Washington averaged just 2.5 runs. Since June 1, the Nationals have scored one run or been shut out seven times. In Sunday’s 6-4 loss to Boston, they left 15 runners on base.
There was industry speculation over the winter that the Nationals would spend money on free agents for the first time in several years, but that never materialized. Instead, the team made minor moves, signing free agents Josh Bell and Michael Soroka, trading for first baseman Nathaniel Lowe and re-signing closer Kyle Finnegan. Now, the hope is a new management team, both on and off the field, can help change the franchise’s fortunes.
The rosters for the 2025 MLB All-Star Game will feature 19 first-timers — and one legend — as the pitchers and reserves were announced Sunday for the July 15 contest at Truist Park in Atlanta.
Los Angeles Dodgers left-hander Clayton Kershaw, a three-time Cy Young Award winner who made his first All-Star team in 2011, was named to his 11th National League roster as a special commissioner’s selection.
Kershaw, who became only the fourth left-hander to amass 3,000 career strikeouts, is 4-0 with a 3.43 ERA in nine starts after beginning the season on the injured list. He joins Albert Pujols and Miguel Cabrera as a legend choice, after the pair of sluggers were selected in 2022.
Kershaw said he didn’t want to discuss the selection Sunday.
Overall, the 19 first-time All-Stars is a drop from the 32 first-time selections on the initial rosters in 2024.
Kershaw would be the sentimental choice to start for the National League, although Pittsburgh Pirates ace Paul Skenes, who leads NL pitchers in ERA and WAR, might be in line to start his second straight contest. Philadelphia Phillies right-hander Zack Wheeler, a three-time All-Star, is 9-3 with a 2.17 ERA after Sunday’s complete-game victory and also would be a strong candidate to start.
“I think it would be stupid to say no to that. It’s a pretty cool opportunity,” Skenes said about the possibility of being asked to start by Dodgers manager Dave Roberts. “I didn’t make plans over the All-Star break or anything. So, yeah, I’m super stoked.”
Kershaw has made one All-Star start in his career, in 2022 at Dodger Stadium.
Among standout players not selected were New York Mets outfielder Juan Soto, who signed a $765 million contract as a free agent in the offseason, and Dodgers shortstop Mookie Betts, who had made eight consecutive All-Star rosters since 2016.
Soto got off to a slow start but was the National League Player of the Month in June and entered Sunday ranked sixth in the NL in WAR among position players while ranking second in OBP, eighth in OPS and third in runs scored.
Earning his fifth career selection but first since 2021 is Texas Rangers righty Jacob deGrom, who is finally healthy after making only nine starts in his first two seasons with the Rangers and is 9-2 with a 2.13 ERA. He has never started an All-Star Game, although Skubal or Brown would be the favorite to start for the AL.
“Red carpet, that’s my thing,” Chisholm said. “I do have a ‘fit in mind.”
Rosters are expanded from 26 to 32 for the All-Star Game. They include starters elected by fans, 17 players (five starting pitchers, three relievers and a backup for each position) chosen in a player vote and six players (four pitchers and two position players) selected by league officials. Every club must be represented.
Acuna, Wood and Raleigh are the three All-Stars who have so far committed to participating in the Home Run Derby.
ESPN baseball reporter. Covered the Washington Wizards from 2014 to 2016 and the Washington Nationals from 2016 to 2018 for The Washington Post before covering the Los Angeles Dodgers and MLB for the Los Angeles Times from 2018 to 2024.
NEW YORK — The New York Yankees were seemingly in deep trouble Sunday when Juan Soto cracked a pitch to left field in the seventh inning.
The New York Mets, down two runs, were cooking up a rally with no outs. Francisco Lindor stood at first base, Pete Alonso loomed on deck, and Brandon Nimmo was in the hole. This was the heart of the Mets’ potent lineup. Given the Yankees’ recent woes, fumbling their two-run lead and suffering a Subway Series sweep at the hands of their neighbors — and a seventh straight loss — seemed almost fated.
Then Cody Bellinger charged Soto’s sinking 105 mph line drive, made a shoestring catch and fired a strike to first base for an improbable double play to secure a skid-snapping 6-4 win — and perhaps rescue the Yankees from another dreadful outcome.
“Considering the context of this week and everything,” Yankees manager Aaron Boone said, “that’s probably our play of the year so far.”
Soto’s line drive off Mark Leiter Jr. had a 10% catch probability, according to Statcast, but Bellinger, a plus defender at multiple positions who started at first base Saturday, was just able to snatch it before it touched the grass. Certain that he caught it clean, he made an 89.9 mph toss that reached first baseman Paul Goldschmidt on a line, over Lindor, who didn’t slide into the bag.
“I saw it in the air and had a really good beat on it,” said Bellinger, who went 2-for-3 with a double and a walk at the plate.
The Mets challenged the catch, but the call stood.
“That was incredible,” said Yankees right fielder Aaron Judge, who swatted his 33rd home run of the season in the fifth inning. “I’ve never seen something like that on the field.”
For the past week, a stretch Boone described as “terrible” for his ballclub, poor defense has been an issue for the Yankees. Physical errors. Mental lapses. Near disasters. The sloppiness helped sink a depleted pitching staff, more than offsetting the offense’s strong production.
That combination produced the team’s second six-game losing streak in three weeks and a three-game deficit in the American League East standings behind the first-place Toronto Blue Jays.
The surging Blue Jays won again Sunday to extend their winning streak to seven games and keep their division lead at three games, but Bellinger’s glove and arm ensured it didn’t grow to four.
“That was an unbelievable play,” Goldschmidt said. “Amazing catch and absolute cannon to me at first. To make that play was a game-changing play and potentially game-winning play for us today. And we needed it.”