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.

OUR SPONSORS

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.

OUR SPONSORS

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: : 02/22/2018 - 19:45

Details about Billabong's half-year results around the world, including how the Billabong, RVCA and Element brands performed in each region

Last updated: : 02/22/2018 - 14:34

We unpack the results of Volcom's #ThisFirst campaign with Ryan Immegart, including what they learned trying to target new audiences, and marketing stratetgy changes they are making overall given the rapidly evolving landscape

Last updated: : 02/21/2018 - 09:42

Hurley is finally putting more resources into its women's business, and has relaunched the line with a new strategy and new modern aesthetic

Last updated: : 02/20/2018 - 08:34

A talk with Kent Untermann, the owner of the high-volume footwear account Island Sole, about the changing retail landscape and the particular challenges of retail in Hawaii

Last updated: : 02/16/2018 - 09:14

It’s hard to believe that Vans' results could keep getting better, but that’s exactly what happened - we have all the details on their global and regional numbers

Last updated: : 02/15/2018 - 11:14

We asked Global Director of Marketing Danielle McKenzie about the strategy behind the new marketing push and how it will be executed

Last updated: : 02/14/2018 - 15:50

Billabong reveals why staying independent is riskier than selling to Boardriders, including details about larger market conditions and Billabong's own internal challenges

Last updated: : 02/13/2018 - 13:10

A look at Volcom's top and bottom line as parent company Kering looks to sell the brand to focus on its luxury business

Last updated: : 02/12/2018 - 10:06

Friends and colleagues remember Boardriders CEO Pierre Agnes

Last updated: : 02/09/2018 - 12:44

A moving, inspirational and crowded memorial service was held for Boardriders CEO Pierre Agnes Friday morning in his beloved hometown of Capbreton, France