Some consumers are leaving Michael Jordan, LeBron James, Stephen Curry and Cam Newton footwear sitting on the shelves and turning toward cheaper alternatives. Companies like Nike and Under Armour have relied on star athletes to sell their footwear and sports apparel for many years, but as of recent they are not doing a good job.
Foot Locker, a Manhattan-based footwear and sportswear retailer, sells shoes from Stephen Curry, LeBron James and Michael Jordan. On Friday, the retailer reported disastrous results, as sales and earnings missed Wall Street’s forecasts.
Customers appear to be no longer interested in pending hundreds of dollars in a pair of sneakers. Michael Jordan attire and footwear sales “slowed considerably” in the quarter, Johnson said.
While Jordan is still Nike’s most popular star athlete, its stock fell by over 15 percent. The retail industry is offering big sales and cutting prices, in an effort to entice consumers to buy more. Some analysts contribute some of the problems on Amazon, as the retail giant ramps up efforts to sell more sneakers. But, consumers buying on the Amazon Marketplace are mainly choosing sneakers with a lower price tag.
Despite Adidas stock falling on Friday, the shares are up almost 40 percent this year. On the flip side, Under Armour stock has fallen 40 percent this year, which is similar to 2016.