Foot Locker’s sales down despite positive performance in North America

Foot Locker storefront
Total sales were down 2.4 per cent to $1.8 billion for the second quarter.

Foot Locker has reported a decline in sales for the second quarter despite an improvement at its North America business.

Total sales were down 2.4 per cent to $1.8 billion for the quarter ended August 2 (down 3.7 per cent when excluding the effect of foreign exchange rate fluctuations).

Comparable sales fell 2 per cent, with a 1.4 per cent increase in North America more than offset by declines of 11.4 per cent in EMEA and 6.4 per cent in Apac.

On a constant currency basis, sales of the Foot Locker banner were up 1.3 per cent, while Kids Foot Locker soared 7.1 per cent. Champ sports sales were flat, while WSS slid 5.2 per cent.

On the bottom line, the company’s net loss widened from $12 million in the year-ago period to $38 million.

“Our results reflect a challenging operating environment and soft store traffic trends, particularly in our WSS and international businesses,” said CEO Mary Dillon.

“Our team continued to execute our Lace Up Plan, remaining focused on elevating our customers’ experiences by leveraging our strong brand partnerships, enhancing our store base through our Refresh and Reimagined programs, improving our digital platforms, and deepening global engagement through our FLX Rewards Program.” 

During the second quarter, the company opened 2 new stores and closed 11 stores. As of August 2, it operated 2354 stores in 20 countries in North America, Europe, Asia, Australia, and New Zealand, along with 243 licensed stores in the Middle East, Europe, and Asia.

The company recently received shareholder approval for its acquisition by Dick’s Sporting Goods. The deal, which implies an equity value of $2.4 billion and an enterprise value of $2.5 billion, was announced in May and is expected to close in the second half of this year.

Given the pending acquisition, Foot Locker did not provide any financial guidance. 

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