American retailer Foot Locker's sales up 1% to $1.89 bn in Q2 FY24

Foot Locker, Inc, a leading US-based retailer of athletic footwear and apparel, has reported a 1.9 per cent increase in sales for the second quarter of fiscal 2024 (Q2 FY24), reaching $1.896 billion, compared to $1.861 billion in the same period last year. This growth was driven by a 2.6 per cent increase in comparable sales, with notable contributions from global Foot Locker and Kids Foot Locker, which both saw comparable sales growth of 5.2 per cent.

Foot Locker's gross margin improved by 50 basis points compared to the prior-year period, indicating a slight enhancement in profitability. However, selling, general, and administrative expenses as a percentage of sales increased by 130 basis points, suggesting higher operational costs relative to revenue, the company said in a press release.

Despite the rise in sales, Foot Locker reported a net loss of $12 million for the second quarter, a deepening of losses compared to the $5 million net loss in the corresponding period of the previous year. On a non-GAAP basis, the company recorded a net loss of $4 million, contrasting with a non-GAAP net income of $4 million in Q2 FY23.

The loss per share for the second quarter was $0.13, compared to a net loss of $0.05 per share in the same quarter of 2023. On a non-GAAP basis, the company reported a loss of $0.05 per share, a decrease from non-GAAP earnings of $0.04 per share in the corresponding period last year.

"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.  Our top line trends strengthened as we moved through the quarter, including a solid start to back-to-school.  We were also particularly pleased to deliver stabilisation in our Champs Sports banner," said Mary Dillon, president and chief executive officer.

Fibre2Fashion News Desk (DP)