Foot Locker sales beat estimates as turnaround bid gains steam

Foot Locker’s sales surpassed analysts’ expectations as turnaround efforts and a rekindled relationship with key partner Nike begin to pay off.
The sneaker seller, which operates seven Irish stores, snapped five consecutive quarters of negative comparable sales with a 2.6 per cent gain for the quarter ended August 3rd, outpacing the average of analyst estimates.
Revenue of nearly $1.9 billion (€1.7 billion) also surpassed Wall Street’s expectations. Foot Locker reaffirmed its full-year outlook for sales.
The results show that customers are coming back to a chain that was struggling to attract shoppers. Chief executive Mary Dillon’s strategy includes an improved rewards program in the US and simplifying overseas operations.
Ms Dillon has prioritised store revamps, and Foot Locker remodelled or relocated more than a dozen locations last quarter – and “refreshed” 67 others. The company is improving selling areas for its brand partners, including Nike and Adidas. Nike, which had tightened supply in recent years in a bid to channel sales to its own stores and website, has shifted its stance and committed to revitalising its relationship with Foot Locker.
Foot Locker is also closing its stores and online businesses in South Korea, Denmark, Norway and Sweden. In the US, Foot Locker is opening a technology hub in Dallas in September and will relocate its headquarters to St. Petersburg, Florida, from New York in late 2025.
In March, executives delayed the company’s target to hit $9.5 billion in annual sales by two years, and Foot Locker now expects to hit that mark by 2028. That sparked a 29 per cent one-day share decline, but the stock has since recovered, posting a 5.3 per cent gain this year through Tuesday’s close. – Bloomberg