Can Foot Locker “Lace Up” a Comeback with Their Cringey New Sneaker Pun?

Let’s be real—Foot Locker, celebrating its big 5-0 (50th anniversary), has been hanging onto those glorious '90s vibes a bit too tightly. With sales down 25.3% in 2023, it seemed like they were slowly fading into the background, joining the ranks of other struggling mall staples. But with the sneaker industry still booming at $80 billion, CEO Mary Dillon (who they snagged from Ulta) believes she’s got the perfect game plan to transform this nostalgia trip into a modern sneakerhead’s dream. 

But let’s not sugarcoat it—Foot Locker’s been on the ropes for a while now. Remember when Nike was 75% of their sales? Yeah, well, Nike wanted to do its own thing by focusing on direct-to-consumer. As a result, Foot Locker took a huge hit and sales tanked 7.2% in that quarter alone. At one point, people were seriously throwing around the word “bankruptcy”.

Dillon’s big comeback strategy for Foot Locker has a catchy name—“Lace Up.” Yeah, it’s a bit of a cheesy sneaker pun, but the plan itself is no joke. The goal? Make Foot Locker cool again by totally revamping their stores. Think less dark, outdated mall vibes and more sleek, futuristic sneaker hangouts. And Dillon’s not just tossing ideas around—Foot Locker’s serious about this. They’re shutting down 500 underperforming stores and replacing them with 400 new or remodeled “stores of the future.”

The new concept stores are basically sneaker heaven. Brands like Nike, Adidas, and Hoka will have their own sections totally dedicated to their unique vibes. Forget the days of generic displays; this redesign is all about showcasing each brand’s personality. Gone are the days of the wall of 100 shoes that make you feel like you’re in a Buc-ee’s beef jerky aisle. After all, nearly 80% of their sales come from in-store purchases—so they’re all about turning shopping into an experience.

Here’s the thing: It’s early but the strategy seems to be working. Foot Locker’s finally starting to turn things around. In Q2 2024, they surprised everyone by beating sales expectations for the first time in six quarters. After over a year of struggles their revenue hit $1.9 billion for the quarter. Stocks responded by inching up a bit, though it’s still been a disappointing year with shares down about 12% in 2024. Still, the pop in sales is a sign that their strategy might just be working.

As Dillon told CNBC, “Brick and mortar is never going to be dead,” and that’s especially true in the sneaker game. With their FLX loyalty program offering early access to exclusive drops, discounts, and all the perks sneaker fans crave, Foot Locker’s hoping to win back customers one exclusive release at a time.

While there is some hope, Foot Locker still faces an uphill climb. The company’s stock has been on a bit of a downer, recently dipping about 3.5%. Analysts remain cautious but optimistic. After an impressive 60.14% surge in its share price over the past year, the average price target is sitting at $28.92, which hints at about 5.32% potential for growth. So, there’s definitely room to run.

So, can Foot Locker really stage a comeback? It’s looking like a cautious “maybe.” Closing 500 underperforming stores and revamping 400 into modern spaces is starting to pay off, with sales per square foot up 6%. By focusing on stronger brand partnerships, especially with Nike (which makes up 70% of their inventory), they’re shifting in the right direction. The stock isn’t exactly moonwalking back to 2021 highs, but hey, at least it’s not flatlining.

P.S. Last Thursday, we dropped an alert exclusively for our premium members, and by market close, that stock soared 140.45%. If you missed it, well, that’s on you—but don’t worry, you’ve got one last shot at redemption. Our next alert is dropping tomorrow at 12 PM ET, and trust me, you don’t want to be the one sitting on the sidelines again. Click here to become a premium member and get in before the next stock takes off.

Stocks.News has positions in Ulta, Nike, and Foot Locker.