Foot Locker's stock falls in wake of Nike's downbe

Shares of Foot Locker Inc. dropped 3.7% in premarket trade Friday, in the wake of Nike Inc. stock pullback on a downbeat sales outlook. In Foot Locker's 10-K filing for the fiscal year-ended Feb. 3, 2018 (the 10-K for the year ended February 2019 has not yet been filed), the athletic footwear seller said it was "highly dependent" on Nike, as about 67% of all merchandise bought in 2017 was from Nike, with each operating division buying 44% to 73% of their merchandise from Nike during the year. As a result, Foot Locker said any "adverse development" in Nike could have an "adverse effect on our business, financial condition and results of operations." Nike's stock dropped 4.8% ahead of Friday's open, after the company reported late-Thursday fiscal third-quarter earnings that topped expectations, but sales that matched and provided a fourth-quarter sales growth outlook that was below expectations. Foot Locker's stock has rallied 23% over the past three months through Thursday, while Nike shares have climbed 22% and the Dow Jones Industrial Average has rallied 16%.

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