For Foot Locker Inc., kicking the Nike habit is hard.

Shares of the New York City-based footwear and apparel retailer tumbled about 30% Friday after the company said it expects weaker sales and profits this year due to the current economic environment and its efforts to overhaul its business.

Foot Locker said that its guidance reflected having…

For
Foot Locker Inc.,
kicking the Nike habit is hard.

Shares of the New York City-based footwear and apparel retailer tumbled about 30% Friday after the company said it expects weaker sales and profits this year due to the current economic environment and its efforts to overhaul its business.

Foot Locker said that its guidance reflected having access to fewer
Nike Inc.
products to sell. The company also said the combination of inflation, supply-chain disruptions and the absence of another lift to consumers’ bank accounts from government stimulus would dent sales.

Comparable sales, or sales at stores open for at least a year, are expected to decline by between 8% and 10% this year, Foot Locker projected.

Nike accounted for 70% of Foot Locker’s merchandise purchases in 2021. Foot Locker said Friday no one vendor would account for more than 60% of total purchases in the 2022 fiscal year.

“We continue to have a strong relationship with Nike, and they remain an important partner for our business, especially in basketball, children and sneaker culture,” Chief Executive

Richard Johnson
said on a conference call with analysts. “2022 will reflect an acceleration of pre-existing strategies that are well under way and have already been yielding success.”

In recent years, Nike has cut around half of its wholesale accounts in North America while focusing on sales through its own apps, websites and stores.

Mr. Johnson said executives have been planning around the fact that Foot Locker would have smaller quantities of Nike products later this year and beyond. He said consumer behavior changed because of the Covid-19 pandemic, and made it clear that multibrands destinations matter.

The CEO said other brands the company sells including Adidas, Puma, New Balance and
Crocs

showed momentum last year.

“There’s nothing like a retro Jordan launch that comes on a Friday and sells on a Saturday. That’s a tough dynamic to overcome,” Mr. Johnson said.

Nike didn’t immediately reply to a request for comment.

“‘Foot Locker’s going to work in other brands, but Nike’s the strongest. It might not be easy to replace those sales.’”

— Cristina Fernandez, Telsey Advisory Group LLC

Cristina Fernandez, an analyst at Telsey Advisory Group LLC, said Foot Locker’s challenge will be replicating the sales success that Nike brands have once product quantities fall.

“Foot Locker’s going to work in other brands, but Nike’s the strongest,” she said. “It might not be easy to replace those sales.”

Foot Locker said it would lean more on apparel and continue to diversify the mix of brands it sells. The company launched LCKR, its own menswear brand, in the third quarter, and Cozi, a womenswear brand, in December. Its apparel category sales grew 30% in the quarter ended Jan. 29.

Last year the company acquired sportswear retailers WSS and Atmos, which gave Foot Locker a bigger presence internationally and outside of malls. In addition to expanding those brands, it plans to open four larger pilot stores that would provide a one-stop shop for everything related to sports and wellness.

Overall the company expects to cut its store footprint by 3% in 2022. As of late January it had 2,858 stores, primarily based in malls across 28 countries and 142 franchised stores in the Middle East and Asia.

It also wants to tighten its connections with Goat Group, the parent company of the online sneaker marketplace Goat. Foot Locker invested $100 million into the company in 2019.

In the fourth quarter, which included the key holiday shopping season, sales grew to $2.34 billion from $2.19 billion a year earlier. Comparable-store sales climbed by 0.8% in the quarter. Analysts were expecting sales of $2.32 billion.

Higher supply-chain costs contributed to net income falling 16% from a year earlier to $103 million, or $1.02 a share. Stripping out one-time items, Foot Locker’s adjusted per-share earnings were $1.67, which came in ahead of analysts’ forecasts.

For the current year, the company expects a range of issues to weigh on profits including stepping up merchandise promotions, supply-chain costs and expenses tied to reducing its store count. The company also forecast adjusted earnings of $4.25 a share to $4.60 a share, lower than the $6.41 a share that analysts expected.

Write to Inti Pacheco at inti.pacheco@wsj.com and Matt Grossman at matt.grossman@wsj.com