"Primary losses came in LeBron and KD product, a challenge which we've been addressing with our partners at Nike," said Foot Locker president and CEO Dick Johnson.
Johnson and others on the call attributed the problem to the pricing of the lines–they say the shoes are getting too expensive for kids who aren't comfortable with the price/value relationship. The current Kevin Durant signature sneakers range from $180 to $200, while LeBron James' retail from $200 to $220.
Foot Locker is confident that its basketball business will bounce back after Nike addresses this pricing issue. Nike is planning to drop the price on Durant's next model–his upcoming Nike KD 9 will start at $150 when it launches on June 20.
Johnson said that sales of the current Under Armour Curry and Nike Kyrie shoes, which retail at $130 and $120, respectively, continue to be strong.