Foot Locker Q4 revenues fall following disappointing holiday trading

Foot Locker has reported a drop in revenues for the fourth quarter of the year citing weaker than expected holiday trading and tough competition.

The New York-based athletic retailer reported net income of 141 million dollars, or 1.34 dollars per share, for the 13 weeks ended 1 February, compared with 158 million dollars, or 1.39 dollars per share, for the corresponding prior-year period.

Total sales fell by 2.2 percent to 2.22 billion dollars, compared with 2.27 billion dollars in the fourth quarter of 2018, while comparable-store sales decreased 1.6 percent. Excluding the effect of foreign exchange rate fluctuations, total Q4 sales decreased by 2 percent.

On a non-GAAP basis, the company earned 1.63 cents per share, a 4 percent increase year-on-year.

Richard Johnson, chairman and CEO, said in a statement: “While we had leading positions in key on-trend footwear styles, this was not enough to offset softer than expected demand during the compressed holiday season, a very promotional marketplace for apparel, and tougher launch comparisons.”

Lauren Peters, executive vice president and chief financial officer, added: “We took actions during the quarter to manage slower-moving items which pressured our gross margin rate more than expected. Importantly, our ongoing disciplined expense management enabled us to better align our variable expenses with the softer sales trends, while continuing to invest in our key strategic imperatives.

“Additionally, the early benefits from the investments in our websites and logistics systems, together with our associates' commitment to outstanding customer service, positioned us to produce a single day record volume, with sales exceeding 115 million dollars.”

Photo credit: Foot Locker, Facebook