By Ananya Mariam Rajesh and Nicholas P. Brown

(Reuters) - Foot Locker executives said on Wednesday they are working closely with Nike to emphasize its newer styles, including Vomero and Air DT Max shoe models, amid "softness" in demand for the sneaker giant's products as the holiday shopping season begins.

"We'll work through some of this short-term turbulence and play the long game for sure," said Foot Locker Chief Commercial Officer Frank Bracken on a call with investors.

In both 2022 and 2023, Foot Locker purchased 65% of its athletic merchandise from one major supplier: Nike. But in recent years, the iconic footwear brand has seen trendy competitors like On and Hoka slowly eat away its market share.

Shares of Foot Locker fell as much as 20% on Wednesday after the sporting goods retailer lowered its annual sales and profit forecasts on softening demand for shoes. It now expects annual sales to drop between 1% and 1.5%, compared with its prior forecast of a 1% rise to a 1% fall.

Nike Vomero shoes sell for $160 to $180, and next year the company is expected to launch a new Vomero 18 running shoe with extra cushioning. Nike has also launched the Air DT Max, priced at $170, which claims to provide more cushioning and impact protection when playing sports.

In September, the world's largest sportswear maker named company veteran Elliott Hill as its new CEO, embarking on a business revamp that could help it regain holding with retailers and fight competition from brands perceived as more fashionable.

"Elliott and his teammates I think are absolutely taking the right actions for the brand and the overall marketplace," Foot Locker CEO Mary Dillon said on the earnings call.

The retailer has also recently expanded a Home Court partnership — known to house the latest drops from major brands — with Nike to rebuild sales.

Hill, who took the helm in October, previously said he would seek to repair Nike's relationships with major retail partners. In addition to Foot Locker, Nike sells its sneakers to Dick's Sporting Goods and Nordstrom, among others.

Ahead of a shorter holiday season, Dick's Sporting Goods said last week that it would stock plenty of basic favorites, such as Nike fleece clothing, for last-minute shoppers.

But when discussing sneakers, the retailer's financial chief said he saw opportunities to expand Nike competitors such as On Holding and Deckers Outdoor's Hoka sneakers.

Foot Locker executives also said on Wednesday they would open more doors and increase their stock of hot selling products On and Hoka.