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Wednesday, September 17, 2025

Sports Retailers, Brands Struggle As Consumer Habits Shift 

  • Foot Locker’s stock was down around 30% after poor quarterly sales.
  • Peloton’s stock slipped more than 20% after high costs for a recent product recall.
Foot Locker's Q1 sales dropped 11.4%.
Foot Locker Inc.

The stock market isn’t being so kind to fitness and athletic brands this week, as more companies continue reporting less-than-stellar financial results.

Foot Locker’s stock was down around 30% to just over $16 a share on Wednesday, and its $1.86 billion in quarterly sales was less than expected, down 9.9% year-over-year. The company cited “ongoing consumer softness” for the poor results.

In the wake of the report, Nike, Adidas, and Puma all saw their stock prices dip slightly, though none more than 5%.

Foot Locker’s news follows Dick’s Sporting Goods’ worst financial quarter since before the pandemic. As of Wednesday, Dick’s stock was still down about 25% from before its earnings report.

And the downward trend doesn’t stop there — Peloton’s stock slipped more than 20% to just over $5 a share on Wednesday after its earnings report disclosed that a recent product recall cost $40 million, pausing around 20,000 monthly subscriptions while customers waited for a replacement seat post.

Post-Pandemic Reality

The fitness category couldn’t have been hotter during the pandemic as more consumers leaned into exercise and more active habits. But with the world seemingly back to pre-pandemic form, retailers appear to be paying a steep price — and will adjust expectations accordingly.

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