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Foot Locker posts decline in Q1 earnings to 1.36 dollar

By Prachi Singh

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Business

Foot Locker’s net income for the first quarter ended April 29, 2017 was 180 million dollars or 1.36 dollars per share, compared with 191 million dollars or 1.39 dollars per share in the same period of 2016. The company’s comparable-store sales increased 0.5 percent, while total sales increased 0.7 percent, to 2,001 million dollars. Excluding the effect of foreign currency fluctuations, total sales increased 1.8 percent.

“The first quarter was one of our most profitable quarters ever, but it did fall short of our original expectations,” said Richard Johnson, Chairman of the board and CEO in a statement, adding, “The slow start we experienced in February, which we believe was largely due to the delay in income tax refunds, was unfortunately not fully offset by much stronger sales in March and April.”

The company’s gross margin rate decreased to 34.0 percent of sales from 35 percent a year ago, and the selling, general, and administrative expense rate increased 30 basis points to 18.5 percent of sales.

During the quarter, the company opened 30 new stores, remodelled or relocated 61 stores, and closed 39 stores. As of April 29, 2017, Foot Locker operated 3,354 stores in 23 countries in North America, Europe, Australia, and New Zealand. In addition, 62 franchised Foot Locker stores were operating in the Middle East and South Korea, as well as 15 franchised Runners Point stores in Germany.

Picture:Facebook/Foot Locker

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