"Foot Locker's solid third quarter results in the midst of ongoing macroeconomic challenges are a testament to the strengths of this organization that I am honoured to now be leading. Despite the tough environment, our expanding customer base remained resilient, and I'm proud that our team delivered sales above our expectations, thanks to their exceptional execution", commented Mary Dillon, President and Chief Executive Officer of Foot Locker.  

Third Quarter Results

In the third quarter of fiscal 2022, the company's comparable-store sales increased by 0.8%, on a comparable basis to "record sales levels" in the same period of last year. Total sales decreased by 0.7% in this period, reaching 2.17 billion US dollars, as compared with sales of 2.19 billion US dollars in the third quarter of fiscal 2021.

Gross margin declined by 270 basis points in the three months to the 29^th of October, on a comparable basis to a similar period of the prior year, "driven mainly by higher markdowns on increased promotional activity across the industry, and modest supply chain cost pressure".

In the third quarter of the current fiscal year, Foot Locker posted a net income of 96 million US dollars, or 1.01 US dollars per share, as compared to a net income of 158 million US dollars, or 1.52 US dollars per share, in the same period of last year.

Nine Months Results

Foot Locker's total sales amounted to 6.41 billion US dollars in the first nine months of 2022, reflecting a decline of 3.1%, as compared to total sales of 6.62 billion US dollars in the same months of 2021. In this period, the company also recorded a decrease of 3.9% in comparable store sales, year-over-year.

As of the 29^th of October, the retailer's net income totalled 323 million US dollars, or 3.38 US dollars per share, as compared to a net income of 790 million US dollars, or 7.54 US dollars per share, in the same period of the previous year.

Fiscal 2022 Outlook

"Following better-than-expected results for the third quarter and strong momentum coming out of the quarter, we are increasing our outlook for the fourth quarter and the full year.  While the macroeconomic environment remains uncertain, our demand trends, and inventory position in high-quality product gives us the confidence we can achieve our new range, while also remaining flexible to manage through ongoing volatility", commented Andrew Page, Executive Vice President and Chief Financial Officer.

Foot Locker is now expecting total sales to drop between 4% to 5% in the current fiscal year, as compared to the previous guidance of a sales decrease in the range of 6% to 7%. Non-GAAP earnings per share are now estimated between 4.42 US dollars to 4.50 US dollars, against the previous forecast of between 4.25 US dollars to 4.45 US dollars.