Foot Locker goes off track again in Q2

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Foot Locker goes off track again in Q2

By Marianne Wilson - 08/23/2019
Foot Locker turned in a disappointing second-quarter performance with earnings and sales that missed expectations.

The specialty athletic footwear and apparel retailer reported net income of $60 million, or $0.55 cents per share, in the quarter ended Aug.3, down from $88 million, or $0. 75 cents per share, last year. Adjusted earnings per share of $0. 66 cents missed analysts’ estimates by one cent. Foot Locker also missed estimates in its first quarter.

Sales fell 0.4% to $1.77 billion, below analysts’ estimates of $1.82 billion. Same-store sales edged up 0.8%, also below estimates.

“While our results in the second quarter did come in at the low end of our expectations, we saw improvement in our performance as we moved through each month of the quarter,” said Richard Johnson, president and CEO. “We remain deeply connected with sneaker and youth culture, and believe this positive momentum exiting the quarter has us well-positioned for the back-to-school period and beyond. Further, our team continues to make meaningful progress against our long-term strategic imperatives.”

Foot Locker recently brought its customer- and community-centric “power store” format to Manhattan’s Washington Heights neighborhood, opening a 9,000-sq.-ft. location that features an array of interactive experiences, including proprietary digital technology from Nike. The retailer plans to open more than a dozen new power locations across its family of brands in 2019, with upcoming stores planned for Los Angeles and Vancouver

As of August 3, 2019, the company operated 3,174 stores in 27 countries in North America, Europe, Asia, Australia, and New Zealand. In addition, 123 franchised Foot Locker stores were operating in the Middle East, as well as 10 franchised Runners Point stores in Germany.

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