Management indicates that while all consumers have become price sensitive, they are still buying what they need. Further, corporate is focused on its opportunity to keep its market share gain from the $100k+ income demo which developed over the last 2 quarters.
How should the market interpret FedEx’s recent report of declining volumes? While scary at first glance, it reveals a rebalancing mix of online and in-person retail sales. Overall retail sales are still outperforming pre-covid levels, revealing the good news that Americans are getting back to normal.
Given that omnichannel customers spend 4x more than single-channel shoppers, Foot Locker’s 3Q sales suffered from a return to in-person shopping. 4Q sales are also expected to suffer because of the company’s decision to stop selling Kayne West’s “Yeezy” product line.
Management discussed how the macroeconomic environment was making it more difficult for them to move bigger ticket items during the quarter with consumer electronics and appliances down high single digits for the quarter.