Foot Locker sales increase by 2 percent

Total fourth quarter sales at Foot Locker increased by 2 percent to 2,380 million dollars. Excluding the effect of foreign exchange rate fluctuations, total sales increased by 1.5 percent.

The company said that comparable sales decreased by 0.7 percent, driven by a 210 basis-point impact from repositioning the Champs Sports banner, consumer softness, and changing vendor mix.

Commenting on the trading performance, Mary Dillon, president and chief executive officer, said: "We are pleased to report fourth quarter results ahead of our expectations, including meaningfully accelerated sales trends relative to the third quarter, earnings per share that exceeded our guidance range, and improvements across multiple KPIs."

The company reported a fourth quarter net loss of 389 million dollars compared with net income of 19 million dollars in the corresponding prior-year period. On a Non-GAAP basis, net income was 36 million dollars compared with 92 million dollars last year.

Fourth quarter diluted loss per share was 4.13 dollars, while non-GAAP earnings per share decreased to 38 cents in the quarter.

During the fourth quarter, the company opened 29 new stores, remodelled or relocated 66 stores, and closed 113 stores.

"We reiterate the 8.5-9 percent EBIT margin target communicated at our March 2023 Investor Day. Given our lower starting point exiting 2023, we expect a two-year delay in achieving that goal and now see reaching that target by 2028. 2024 will serve as a cash rebuilding year, and we, therefore, are not resuming a dividend at this time," added Mike Baughn, Foot Locker’s EVP and chief financial officer.

For the full year, the company projects sales to increase or decrease 1 percent, comparable sales to increase in the range to 1 to 3 percent, gross margin to be in the range of 29.8 percent to 30 percent, and non-GAAP EPS between 1.50 to 1.70 dollars. The company plans to close four stores during the year.