Money

Consumers are even giving up on new sneakers

Published

2 years ago

August 24, 2023

Foot Locker faced a devastating 32% plunge in its stock price as it reported dismal second-quarter earnings, attributing the downturn to what it called “ongoing consumer softness.”

In its latest earnings report released on Wednesday, Foot Locker revealed a staggering 9.9% drop in sales, bringing its quarterly revenue down to $1.8 billion, a notable decline from the $2.1 billion reported during the same period the previous year.

As a direct consequence, Foot Locker’s share price took a nosedive in premarket trading, plummeting by as much as 32.8% to a low of $15.60.

The company, headquartered in New York, had no choice but to revise its yearly forecast downward due to what it described as “the still-tough consumer backdrop.” Now, it anticipates a sales decrease of 8% to 9% for the year, down from the initial prediction of 6.5% to 8%.

Foot Locker’s Chief Executive, Mary Dillon, expressed her concerns, stating, “We did see a softening in trends in July and are adjusting our 2023 outlook to allow us to best compete for price-sensitive consumers.”

Furthermore, Foot Locker’s yearly earnings outlook also witnessed a substantial reduction, with the company now projecting earnings per share between $2 and $2.25. This is a significant drop from the initial forecast of $3.35 to $3.65 per share and falls considerably short of the $3.47 that analysts had expected.

The root cause of this downturn, as Foot Locker reported, is the persistent “consumer softness,” which has led to decreased consumer spending on their products.

Retail struggle

This announcement comes in the wake of similar struggles in the retail industry. Macy’s, another iconic department store, reported declining sales in its second-quarter earnings, which it attributed to diminishing consumer spending and an increase in credit card delinquencies. Macy’s net sales for the period fell from $5.6 billion in the previous year to $5.1 billion.

In-store sales at Macy’s also took a hit, dropping 8%, and digital sales decreased by 10% compared to the same period last year. This disappointing performance caused Macy’s stock to tumble by over 14% to $12.57.

Meanwhile, Target experienced its first quarterly sales drop in six years, with sales down 5.4% from the previous year, including a 10.5% decline in digital sales. Target’s CEO, Brian Cornell, attributed part of the losses to inflation and boycotts of the retailer’s controversial “Pride” collection.

Another retail giant, Dick’s Sporting Goods, reported a 23% drop in profits despite a 3.6% increase in sales, citing “organized retail crime” and inventory shrink as the primary reasons for the disappointing results.

The common thread among these retailers is the challenging environment characterized by consumer reluctance to spend, which is impacting their bottom lines and stock performance. As these companies grapple with these challenges, they are left with the task of finding innovative ways to adapt to the evolving consumer landscape.

Money

Wall Street tumbles as tech stocks face AI disruption fears

Wall Street falters as tech stocks dive amid AI anxieties; 2026 seen as critical for proving AI investment returns.

Published

57 minutes ago

February 13, 2026

Harvey Vargas

Wall Street falters as tech stocks dive amid AI anxieties; 2026 seen as critical for proving AI investment returns.

Wall Street took a sharp hit as tech stocks plummeted amid growing investor anxiety over artificial intelligence. Markets reacted strongly to uncertainty about how AI could disrupt major sectors, leaving investors on edge. Kyle Rodda from Capital.com explains why investors are nervous about what’s ahead.

Cisco Systems’ quarterly results added to the market jitters, while defensive sectors gained attention as investors sought safer bets. Analysts describe 2026 as a ‘prove it’ year for AI, with companies needing to demonstrate real returns on their ambitious investments.

The January Consumer Price Index report and rising concerns over AI’s impact on transportation companies further weighed on sentiment. Investors are now closely watching major tech firms for signals on how AI spending will shape future market performance.

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

#WallStreet #TechStocks #ArtificialIntelligence #StockMarket #Investing #MarketCrash #NASDAQ #FinanceNews

Money

U.S. jobs report, Fed decisions, and Japan’s economic risks explained

January US jobs report sparks uncertainty; analysts debate impact on Federal Reserve policy and market confidence.

Published

1 day ago

February 12, 2026

Harvey Vargas

January US jobs report sparks uncertainty; analysts debate impact on Federal Reserve policy and market confidence.

The January US jobs report shows a mixed picture for the economy, with payroll revisions and steady unemployment leaving analysts questioning the impact on Federal Reserve policy. We break down what the numbers mean for interest rates and market confidence.

US stock markets could face turbulence as investors digest the latest jobs data. David Scutt from StoneX explains how these figures may influence equities and what the outlook is for global markets.

Meanwhile, developments in Japan and a strengthening yen could spark new macroeconomic risks. From carry trades to unexpected shocks, we explore how these factors ripple across the global economy.

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

#USJobsReport #FederalReserve #StockMarket #MacroRisks #JapanEconomy #GlobalMarkets #CurrencyTrading #EconomicUpdate

Money

Alphabet launches $20B bond to fund AI expansion

Alphabet’s $20B bond offering highlights investor confidence in AI growth, enabling funding without shareholder dilution.

Published

2 days ago

February 11, 2026

Harvey Vargas

Alphabet’s $20B bond offering highlights investor confidence in AI growth, enabling funding without shareholder dilution.

Alphabet has launched a record $20 billion bond offering to finance its massive AI infrastructure build-out, signalling strong investor confidence in the company’s growth strategy. The oversubscribed sale shows that investors are betting on Alphabet’s AI potential and long-term returns.

By using debt instead of equity, Alphabet can raise funds without diluting shareholders. The money will support AI research, advanced computing, and other strategic projects, cementing the company’s leadership in the sector.

Brad Gastwirth from Circular Technologies explains how corporate debt is reshaping tech financing and how investors perceive AI-linked bonds. This record issuance could set a trend for other tech companies looking to fund innovation.

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker