Foot Locker's Q2 comparable sales up by 2.6 percent
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Business
American athletic retailer Foot Locker reported sales increase of 1.9 percent to 1,896 million dollars. Excluding the effect of foreign exchange rate fluctuations, sales increased by 2.5 percent.
The company’s comparable sales for the quarter increased by 2.6 percent, led by global Foot Locker and Kids Foot Locker comparable sales growth of 5.2 percent.
Commenting on the second quarter update, Mary Dillon, the company’s president and chief executive officer, said: "The Lace Up Plan is working, as evidenced by our return to positive total and comparable sales growth as well as gross margin expansion in the second quarter. I remain confident that we are taking the right actions to position the company for its next 50 years of profitable growth and create long-term shareholder value."
Second quarter net loss increased to 12 million dollars, while on a Non-GAAP basis, net loss was 4 million dollars. Loss per share rose to 13 cents and non-GAAP earnings decreased to a loss of 5 cents per share in the second quarter.
During the quarter, Foot Locker opened five new stores and closed 31 stores and operated 2,464 stores in 26 countries in North America, Europe, Asia, Australia, and New Zealand at the end of August 3, 2024. In addition, 213 licensed stores were operating in the Middle East and Asia.
As part of its Lace Up Plan, the company is closing its stores and ecommerce operations in South Korea, Denmark, Norway, and Sweden. It has signed agreements with Fourlis Group in Southeast Europe, to transfer store and ecommerce operations in Greece and store operations in Romania.
By mid-2025, the company said that these actions will result in the closure or transfer of operations for approximately 30 stores of the company's 140 stores in Asia Pacific and 629 stores in Europe. Foot Locker is also moving its global headquarters to St. Petersburg, Florida in late 2025 and opening Global Technology Services (GTS) Hub in Dallas, Texas next month led by chief technology officer Adrian Butler.