Foot Locker sales drop in first quarter on Champs Sports business dive

By

Benjamin Fitzgerald

Published
Aug 24, 2024

Foot Locker Inc. reported on Thursday sales decreased by 2.8%, to $1.87 billion, in the first quarter, coinciding with a slash in profits for the three months ending May 4.

The U.S. multi-brand sneaker retailer said comparable sales were down 1.8% in the quarter, impacted by the Champs Sports banner, which plummeted 18.6% comparable sales-wise. Global Foot Locker and Kids Foot Locker comparable sales increased 1.1%.

First quarter net income dropped to $8 million, as compared with net income of $36 million in the corresponding prior-year period.

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"We had a solid start to the year, which demonstrates that our Lace Up Plan is working," said ​Mary Dillon, president and chief executive officer.

"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 favorable 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."

During the first quarter, the company opened 4 new stores and closed 37 stores, taking the firm's global store count to 2,490 stores in 26 countries in North America, Europe, Asia, Australia, and New Zealand. In addition, 206 franchised stores were operating in the Middle East and Asia.

Earlier this week, Foot Locker unveiled its new Home Court retail concept in New York, a store design that focuses on the retailer's basketball footwear offering.