Foot Locker reduces sales by 2.7% in the first quarter

Shares of the sportswear and footwear retail chain Foot Locker surged by up to 32% this Thursday on the New York Stock Exchange. This uptick followed the release of the company’s quarterly results, which exceeded expectations and confirmed its forecasts for the fiscal year.

In the quarter ending on May 4, the first of the company’s fiscal year, net profit plummeted by 77.8% compared to the same period in 2023, down to $8 million (€7.3 million).

Net sales totalled $1.874 billion (€1.73 billion), reflecting a 2.7% decrease in absolute figures and a 1.8% decline in comparable sales, which exclude the impact of currency exchange and changes in the company’s accounting scope. Market consensus, according to CNBC, had anticipated a comparable decline of 3.1%.

By region, Foot Locker’s sales in North America totalled $1.369 billion (€1.264 billion), a 1.4% decrease, while in Europe, the Middle East, and Africa (EMEA) sales remained stable at $394 million (€364 million). In the Asia-Pacific region, sales dropped by 23.4% to $111 million (€102 million).

For the fiscal year, Foot Locker has confirmed its expectations that sales will either decrease or grow by a single percentage point, with adjusted earnings per share projected to range between $1.50 and $1.70.

“We had a solid start to the year, demonstrating that our ‘Lace Up’ plan is working,” stated Mary Dillon, president and CEO of Foot Locker, expressing confidence that this strategic plan “is positioning the company for sustainable growth and value creation for shareholders.”

Foot Locker shares, which soared up to 32% following the opening of the New York Stock Exchange, maintained a gain of over 25% in the first two hours of trading on Wall Street.

Information provided by Europa Press