Foot Locker Inc ( FL ) shares are trading lower by 3.82% to $24.16 during Wednesday’s session. Shares of footwear and athletic apparel stocks are trading lower in sympathy with Nike Inc which reported first-quarter revenue that missed estimates.

What Happened: Nike reported $11.59 billion in revenue for the quarter, missing Wall Street estimates of $11.65 billion, marking the fourth revenue miss for the company in the last five quarters.

Nike's revenue fell 10% year-over-year, with declines across key regions such as North America, Europe and China, all of which are critical markets for both Nike and its retail partners, including Foot Locker ( FL ).

Foot Locker ( FL ), a leading retailer of athletic footwear and apparel, relies heavily on sales of Nike products, which historically account for a substantial portion of its overall revenue. Nike’s 8% decline in wholesale revenue is particularly concerning for Foot Locker ( FL ), as it signals a potential reduction in the inventory of Nike products available to retailers.

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Wholesale revenues, which amounted to $6.4 billion in the quarter, reflect sales from Nike to third-party retailers like Foot Locker ( FL ), and any softness in this area could directly impact Foot Locker's ( FL ) ability to meet consumer demand.

What Else: Adding to these concerns is Nike’s continued emphasis on its direct-to-consumer (DTC) strategy, which allows Nike to sell its products through its own online platforms and stores, cutting out traditional retail partners. While Nike Direct revenues were down 13% to $4.7 billion in the quarter, the broader trend of Nike focusing on its DTC channels could mean less reliance on retailers like Foot Locker ( FL ) in the long term.

This shift has already been seen in previous quarters, where Nike has prioritized its own retail and digital platforms to engage directly with consumers.

Moreover, Nike’s performance in North America—Foot Locker's largest market—was down 11%, further signaling potential challenges for Foot Locker ( FL ). As one of Nike’s primary retail distributors, Foot Locker’s sales could suffer if demand for Nike products continues to weaken in key regions.

Foot Locker ( FL ), which operates more than 2,700 stores worldwide, is highly dependent on strong partnerships with top athletic brands like Nike. Any decline in Nike's sales momentum directly impacts Foot Locker's ( FL ) product offerings and profitability.

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How To Buy NKE Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Foot Locker’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, FL has a 52-week high of $35.60 and a 52-week low of $17.66.