Shares in trainer retailer Foot Locker jumped by as much as 20 per cent today after its third quarter results showed an increase in shoe sales, as customers flocked to buy Nike’s new Air Max range.
Analysts had feared that Nike’s move to start selling shoes via Amazon and its own stores would hurt Foot Locker which relies on its relationship with big manufacturers to pull in customers.
Foot Locker’s same-store sales from footwear rose in the three months ended 3 November, after falling for six consecutive quarters.
At the time of writing its share price was up 16.4 per cent at $53.72, having climbed by as much as 20 per cent earlier in the day.
Wedbush Securities analyst Christopher Svezia said: “Foot Locker’s position continues to improve and it remains a top destination for sneaker-heads and a strong partner for multiple brands, including Nike.”
Foot Locker’s chief executive Richard Johnson said: “I get excited about launches, but I get more excited about the collaborations that we’ve got with our great vendor partners.”
Nike’s own resurgent shoe sales, especially of Air Max shoes, is benefiting Foot Locker, Jefferies analyst Janine Stichter said.
“While we don’t see the bear case around (Nike’s) push toward a consumer direct strategy going away just yet, we do think that (Foot Locker’s) commentary around the strength of their relationship with Nike should help to quell some fears,” she said.