Buyers of the world’s famous branded sneakers distributed by companies such as Nike and under armour seem to think that they are getting more and more expensive. The feedback is reflected in the sales of these renowned brands, which recently saw a significant drop.
CNN Money reported that Foot Locker, a retailer of the three leading sneaker brands experienced low sales as stocks closed last Friday. The company’s CEO Richard Johnson told CNN that the sales of some of the newest styles went even lower than what they expected.
Johnson predicted that this downward trend will persist until the end of the year, and store sales will also decrease because of the recent figures in Wall Street.
He held a conference call with business analysts to reveal that the sales of some Michael Jordan sneakers, despite the good branding, are considerably slowing down, the report added.
Superstar athletes as endorsers
The three biggest companies that offer branded sneakers to the market are namely Nike, Under Armour, and Adidas. But in the recent article on CNN, these companies are falling down in terms of sales, despite the presence of top-brass promoters and endorsers that come from the biggest leagues in sports.
Currently, leading athletes such as Stephen Curry, LeBron James, and Jordan have staked their names as part of the branding of these shoes. However, with the recent sales reports, CNN Money reported that these endorsers were seemingly not doing their jobs.
According to the article, Jordan sneakers were mentioned around 14 times during the conference call, referred to as a brand that was affected by the sales drop. The companies have these endorsements with the expectation that buyers would come purchasing their products.
Adidas stands strong
Forbes released another report on the same issue experienced by athletic product retailer Foot Locker.
This sales drop was seen to be the biggest loss the retailer has experienced in almost nine years. Aside from the slowdown, the company said that less exciting new shoes are being released to the market at the moment.
The business website also stated that the retailer is planning to shut down around 135 stores after stocks dropped last Friday.
Shares of athletic products reportedly dropped during the trading, raising investor concerns and urging them to take action.
Nevertheless, one of the shoe brands, Adidas is reportedly standing strong during the sales drop. CNN reported that Adidas has dominated the market share. In the middle of Friday’s incident, the shares of the shoe company were still around 40 percent this year.
