The US specialty athletic retailer Foot Locker has said that during the first quarter (Q1) of 2024 (FY ’24), their overall sales decreased by 2.8 per cent to US $ 1.87 billion, from US $ 1.92 billion in Q1 FY ’23.
Foot Locker’s net income for the quarter that ended on May 4, 2024, was US $ 8 million, as opposed to the US $ 36 million recorded for the same period the year prior.
Due to a 220 basis point impact from the current repositioning of the Champs Sports banner, the retailer’s comparable sales decreased by 1.8 per cent. Comparable sales of Kids Foot Locker and Global Foot Locker did, however, experience a little 1.1 per cent gain.
Despite a minor reduction in markdowns from the fourth quarter of 2023, the company’s gross margin decreased by 120 basis points from the same period the previous year. This fall was somewhat offset by occupancy leverage.
A rise of 220 basis points in selling, general, and administrative expenses relative to revenues was attributed to technological investments, brand development, and increased inflation. Foot Locker reported US $ 282 million in cash and cash equivalents at the end of the quarter, while its total debt was US $ 446 million.
The business had 2,490 locations throughout 26 countries at the end of the quarter, having shuttered 37 and built four new ones. The retailer has 206 franchised locations throughout Asia and the Middle East.
Foot Locker predicts comparable sales will climb by 1 per cent to 3 per cent for the entire year 2024, with a sales change ranging from a 1 per cent fall to a 1 per cent increase. Additionally, the retailer anticipates a gross margin of between 29.8 per cent and 30 per cent.
