Foot Locker shares surged after reporting better-than-expected first quarter earnings.
Transcript:
I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Investors had their eyes on technology stocks after Dow component Salesforce issued its weakest-ever sales-growth forecast.
Wall Street was also rattled by the idea it may have to wait longer for an interest rate cut. Revised data released Thursday showed the economy grew at a slower pace in the first quarter than initially announced. Inflation, however, remains uncomfortably high for the Federal Reserve’s liking. Investors await more insight on inflation from Friday’s release of the PCE index.
In other business headlines: A turnaround at Foot Locker is gaining traction. Quarterly revenues matched expectations at $1.8 billion, while a measure of individual store sales was not as bad as feared.
The athletic gear retailer has been on the losing team as higher prices cause a shift in consumer spending. But Foot Locker says average selling prices were up last quarter and more shoppers are willing to pay full price if it’s something they really want to buy. Foot Locker CEO Mary Dillon said the fixes she’s put in place are “solidifying our position at the intersection of basketball and sneaker culture.”
The company has taken steps to improve business by remodeling stores, opening off-mall locations, tweaking its loyalty program, and investing in online operations. A better product mix from Nike could also help as sneaker heads get ready for their next Air Jordans.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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