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Foot Locker’s (NYSE:FL) impressive Q1 earnings report showcased the company’s robust partnerships with leading footwear brands. During the earnings conference call (transcript), Foot Locker highlighted positive developments with ASICS, On Holdings (NYSE:ONON), and Deckers Outdoor’s (NYSE:DECK) brand in particular.
ASICS, On, and Hoka Momentum
Foot Locker reported strong global momentum with ASICS across men’s, women’s, and kids’ product lines. The company is catering to high demand for On (ONON) and Hoka sneakers by increasing allocations and expanding their presence in new stores, including kids’ sections for both brands. In Q1, Foot Locker more than doubled its Hoka business as consumers recognized the performance and comfort qualities of the Deckers Outdoor (DECK) brand. Foot Locker plans to share consumer insights with Hoka to sustain this growth. Meanwhile, On Holdings’ (ONON) running business exhibited positive trends as the On Running brand appealed to younger and more diverse customers. The Cloudmonster and Cloudtilt were highlighted as innovative, stylish, and comfortable franchises that Foot Locker customers are embracing.
Adidas Acceleration
Foot Locker also noted that the Adidas (OTCQX:ADDYY) brand continued to accelerate in Q1 across all global retail divisions. The impressive growth was led by the women’s business but also included strong momentum in men’s and kids’ segments. Looking ahead, Foot Locker (FL) stated that the Samba, Gazelle, and Campus lines have formed a solid foundation for Adidas (OTCQX:ADDYY) to drive continued sales growth in Q2 and into the fall and holiday seasons. Chief Commercial Officer Frank Bracken commented, “As we layer in strong marketing and improved in-store presentation in support of the Adidas brand, we are very pleased to have returned to offense with this critical partner.”
Nike Partnership
Foot Locker’s top partner, Nike (NYSE:NKE), also received a positive review. Foot Locker executives recently attended Nike’s innovation events in Paris in April. They expressed excitement about Nike’s innovation pipeline, starting with the Paris Olympics and extending into the back half of 2024 and 2025, supported by powerful storytelling. Foot Locker remains optimistic about returning to growth with Nike during the holiday quarter. Nike plans to focus on its basketball business through The Clinic, Foot Locker’s program with the Nike and Jordan brands, which continues to evolve. Nike’s basketball stars, including Sabrina Ionescu, Devin Booker, Ja Morant, Jayson Tatum, Caitlin Clark, and Luka Doncic, are expected to boost sales at Foot Locker. The long-term view is that Foot Locker is well-positioned to benefit as Nike refocuses on the wholesale channel.
