Skip to content Skip to navigation

Foot Locker, Journeys and Adidas

Print Friendly and PDF
  • The Adidas presentation at Foot Locker - Photo by SES
  • The Adidas selection for back to school at Journeys - Photo by SES

I keep thinking about the Journeys Adidas issue.

Journeys is a huge industry footwear customer with 846 stores in the U.S. and Canada. It has outperformed much of the market during the challenging retail environment and strives to differentiate itself from the athletic footwear retailers at the mall.

Journeys’ parent company Genesco dropped a bombshell on its earnings conference call Sept. 1: Journeys had underestimated the hotness of a fashion athletic brand (sources say it’s Adidas) for the key back-to-school season.

While Journeys is carrying the brand, it didn’t have the breadth it needed to keep up with the overwhelming demand in the market.

That miss was so bad, or Adidas is so hot, that Journeys' same-stores sales turned negative and Genesco was forced to lower its earnings outlook for the year. Journeys will not be able to get the product it needs until the spring season, executives said.


At first this puzzled me because I thought I saw a decent presentation of Adidas at Journeys for back to school.

Then someone suggested I go to a Foot Locker store. It was an “Aha” moment.

Foot Locker had a massive Adidas section with about 95 shoes in different colors and styles. From what I’ve been told, it’s not just one Adidas style that is hot. It’s several, and this section covers all the bases, including Stan Smith, Superstars and Ultra Boost.

By comparison, Journeys' presentation looks small. Unfortunately, Journeys is likely competing with Foot Locker’s Adidas assortment in nearly every mall Journeys operates in.

Foot Locker has 1,088 stores in the U.S. in Canada. I would guess that not every store has 95 styles and colors of Adidas, but most likely have more Adidas inventory than Journeys.


After the earnings call, Genesco’s stock took a huge hit. On Aug. 31, the day before the call, Genesco stock closed at $72.64. On Sept. 1, the day of the call, the stock closed at $48.79, a 32% decline.

The stock price has climbed back a bit and is trading at $49.90 this morning.

It's amazing that a brand trend could have that much of an impact on one company.



More news

Last updated: : 09/22/2017 - 08:32

We talk with Eric about all the changes at Smith, including being in the spotlight at parent company Safilo, ambitious new targets for Smith eyewear, and an update on the snow business

Last updated: : 09/21/2017 - 07:11

Walking the store floor with the family owners and the buying team at the very important core account in Jacksonville Beach, Florida

Last updated: : 09/20/2017 - 16:02

The hiring of Michael Marckx as Global GM for VonZipper this week signals more than just a new leader for the sunglass brand

Last updated: : 09/19/2017 - 08:51

The retail landscape continues to evolve, with several new developments this week

Last updated: : 09/18/2017 - 19:44

The former Spy Inc. CEO joins the Billabong Group and will work with Founder Greg Tomlinson

Last updated: : 09/18/2017 - 11:55

A talk with Tactics Co-Founder Matt Patton and Retail Director Adam Gerken about the new store in Bend, what's working in skate and snow, and the state of online retail

Last updated: : 09/15/2017 - 14:17

A business conversation about Hydro Flask's continued growth, approach to new products, advice for young brands, and how the company’s motto -- “Saving the World From Lukewarm” -- plays out in every aspect of its business.

Last updated: : 09/13/2017 - 14:59

Marcato is nominating a slate of 10 candidates for the company’s board of directors, including former executives at L.L. Bean, Toys ‘R’ Us, Ralph Lauren, Justice, and Michael Kors

Last updated: : 09/13/2017 - 09:02

We talk with Debbie Harvey and key members of her buying and planning team, Emma White-Pryor and Todd Gerkens, about what is working at Ron Jon stores and how the key summer selling season went

Last updated: : 09/12/2017 - 12:09

We check in with Florida retailers to see how they have been impacted by the storm