Retailors reports: Sales in same-store locations continued to decline in the second quarter

The weakness in Retailors' sales continues into the second quarter of 2026, and in the reports published by the company today, one of the steps intended to soften the impact on the subsidiary of the Fox-Wizel group was revealed.

Global Nike, which is under a binding agreement in 22 countries with Retailors, participates in the company's operating expenses and has been granting it benefits in purchasing terms over the last few quarters, with an emphasis on the second quarter.

In the report, Retailors notes that the impact on Nike sales was partially offset through the participation of global Nike in operating expenses as well as through benefits in purchasing terms. The company does not detail the scope of the benefits and participation, and therefore it is impossible to know what the profitability of the activity would have looked like without them.

The assistance comes at a time when sales in Nike's same-store locations continue to decline - in the second quarter they fell by approximately 9.5%, following a sharp decline of 17.7% in the first quarter.

The rate of decline has moderated, but even after half a year, Retailors is still unable to return the brand's existing stores to growth. In the first quarter, the company reported a decline of 17.7% in sales at Nike's same-store locations.

The assistance from Nike is particularly prominent against the backdrop of the erosion in the profitability of the brand's activity. Revenues for the Nike segment totaled approximately 409 million shekels in the quarter, a decrease of approximately 2% compared to the corresponding period, and the operating profit fell by approximately 38% to approximately 20 million shekels.

This picture continues a trend that was already clear in the first quarter - when the revenues of Retailors as a whole fell to approximately 497 million shekels, compared to approximately 526 million shekels in the corresponding period, and the Nike activity moved to an operating loss of approximately 20.2 million shekels. The company noted then that the loss was mainly due to the decline in sales in same-store locations and in sales per square meter in non-same-store locations.

The weakness is not limited to Nike

In the second quarter, Retailors has already returned to profit, but the gap between the top line and the performance of existing stores remains significant. The company's revenues totaled approximately 594 million shekels, a decrease of approximately 1.3%, and the operating profit fell by about a third to approximately 31 million shekels.

Bottom line, the company recorded a net profit of approximately 11 million shekels. Thus, after the weak first quarter, the second quarter signals a certain stabilization - but not yet a turnaround in the sales trend.

The weakness is not limited to Nike. At Foot Locker, sales in same-store locations fell by approximately 6% in the second quarter, and in the first half as a whole, it is a decline of almost 10%. This is despite the fact that the segment's total revenues rose in the quarter, among other things, against the backdrop of the expansion of activity. Already in the first quarter, sales in Foot Locker's same-store locations fell by 11.7%, so in this activity as well, it is a second consecutive quarter of declines.

All this is happening while Retailors is actually continuing to expand its presence under Nike in the world. The company is continuing with plans to open additional stores in Europe, and in particular in Germany and France, and clarifies that it continues to believe in the strength of the brand and in deepening the cooperation with it. Already in the first quarter report, it wrote that it estimates that the strategic steps that Nike is taking may continue to support its growth engines, and that it continues to work to expand the activity in the brand.