Companies

Foot Locker reiterates full year outlook

Jun 5, 2024 United States

Amid its turnaround plan, the US-based sports retailer reported “solid” first quarter results, in line with previous expectations, thus reaffirming its outlook for the full year 2024

“We had a solid start to the year, which demonstrates that our Lace Up Plan is working. We delivered comparable sales results and gross margin in line with our expectations, while earnings per share outperformed due to disciplined expense management and some favourable shifts in expense timing. Importantly, we are well-positioned with fresh assortments as we approach the summer and Back-to-School seasons, and we are pleased to be reaffirming our full-year outlook”, commented Mary Dillon, President and Chief Executive Officer.

First Quarter Results

In the first quarter of the current fiscal year, Foot Locker’s total sales declined by 2.8% (or 2.4% on a constant currency basis) to 1.87 billion US dollars, as compared to the same period of 2023.

This decline was partly due to the repositioning of the Champs Sports banner, which impacted comparable sales by 2.2% year-over-year. On the other hand, both the Global Foot Locker and Kids Foot Locker segments recorded a comparable sales increase of 1.1% year-over-year.

In the three months ended on the 4^thof May, the company’s gross margin was 120 basis points lower than in the same period last year, “with markdowns sequentially moderating compared to the fourth quarter of 2023, partially offset by occupancy leverage”.

Foot Locker reported a first quarter net income of 8 million US dollars, or earnings of 0.09 US dollars per diluted share, as compared to a net income of 36 million US dollars, or 0.38 US dollars per diluted share, in the same quarter of 2023.

Store Base Update

During the quarter, the company opened 4 new stores and closed 37 stores, bringing the total number of stores in North America, Europe, Asia, Australia and New Zealand to 2 490. In addition, 16 stores were remodelled or relocated, and 13 stores were upgraded to the company’s current brand standards. There were also 206 franchised stores operating in the Middle East and Asia at the end of the period.

Full Year Outlook

Foot Locker reiterated its guidance for fiscal 2024, continuing to expect sales to be between negative 1% and 1% below the prior year and comparable sales to be between 1% and 3% above the prior year.

Image Credits: stores.footlocker.com

United States Companies Foot Locker, Inc. Footwear Quarter Results Results Sportswear