"We are off to a strong start in 2022, reporting a solid quarter against the tough comparisons of fiscal stimulus and historically-low promotions from last year. Our progress in broadening and enriching our assortment continues, as we continue to meet our customers' demand for choice.  These efforts helped drive our strong results in the first quarter, and we believe will allow us to more fully participate in the robust growth of our category going forward. As we elevate brands across our portfolio, continue to use our real estate flexibility to optimize our footprint, and evolve our omnichannel capabilities, we are excited about our improving ability to expand our customer base and fuel our consumer's desire for self-expression", commented Richard Johnson, Chairman and Chief Executive Officer.

First Quarter Results

In the first quarter of fiscal 2022, which ended on the 30^th of April, Foot Locker posted net income of 133 million US dollars, or 1.37 US dollars per share, as compared to net income of 202 million US dollars, or 1.93 US dollars per share, in the same period of last fiscal year.  

Comparable-store sales declined by 1.9% in this period, with apparel “significantly” outpacing footwear, on a comparable basis to similar period of fiscal 2021. Total sales grew by 1.0% over the first quarter of fiscal 2022, reaching 2.17 billion US dollars, as compared to 2.15 billion US dollars in the first quarter of the prior year. Excluding the effect of foreign exchange rate fluctuations, total sales increased by 3.0%.

The retailer also informed that, in the first quarter of the current fiscal year, gross margin declined by 80 basis points, on a comparable basis to the same period of the previous fiscal year, due to "higher supply chain costs and slightly higher markdowns versus historically-low levels".

Store Base Update

In the first quarter of fiscal 2022, the company opened 24 new stores, remodelled or relocated 23 stores, and closed 67 stores. As of the 30^th of April, Foot Locker operated 2 815 stores in 28 countries in North America, Europe, Asia, Australia and New Zealand. In addition, 148 franchised stores were operating in the Middle East and Asia.

Fiscal 2022 Outlook

"Following our solid results from the first quarter, our strong inventory position going into the remainder of the year, and our strengthening vendor relationships, based on our current visibility, we now expect to achieve the upper end of our revenue and earnings guidance for the full year", added Andrew Page, Executive Vice President and Chief Financial Officer.

For fiscal 2022, Foot Locker is now expecting a sales drop of 4% to 6% and adjusted earnings per share of between 4.25 US dollars and 4.60 US dollars.