American retailer Foot Locker posts net sales of $1.87 bn in Q1 FY24

Comparable sales decreased by 1.8 per cent, with a 220 basis-point impact from the continued repositioning of the Champs Sports banner. However, global Foot Locker and kids Foot Locker comparable sales saw an increase of 1.1 per cent, Foot Locker said in a press release.

The company's gross margin declined by 120 basis points compared to the prior-year period. Additionally, selling, general, and administrative expenses as a percentage of sales increased by 220 basis points year-over-year.

Foot Locker reported a net income of $8 million for the first quarter, compared to $36 million in the corresponding period of the previous year. On a non-GAAP basis, net income was $21 million, down from $66 million in the first quarter of FY23. Earnings per share (EPS) for the quarter were $0.09, compared to $0.38 in the same period last year. On a non-GAAP basis, EPS decreased to $0.22, from $0.70 in the corresponding prior-year period.

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

Fibre2Fashion News Desk (DP)