Foot Locker cutting staff; exec departs

Foot Locker is “streamlining” its organization as new CEO Mary Dillon continues to make her mark on the company.

The athletic apparel and footwear retailer disclosed in a Securities & Exchange filing that it is winding down its Sidestep banner in Europe in a move “consistent with the company’s broader efforts to focus on its core and growth banners.” Sidestep operates approximately 80 stores in Europe.

In addition, Foot Locker said it has eliminated a number of corporate and support roles (it did not reveal the number). The company said the cuts were targeted at “streamlining the organization and enhancing operational efficiency.  The job reductions are expected to result in cost savings of approximately $18 million on an annualized basis starting in fiscal 2023.

Also in the SEC filing, Foot Locker revealed that Andrew I. Gray, who served as executive VP, Global Lockers and Champs Sports of Foot Locker, departed the company, effective January 23, 2023.

Foot Locker has seen several executive comings and goings since Dillon, the former CEO of Ulta Beauty, took the reins of the company in September. In November, Foot Locker announced a series of leadership changes that included the appointment of Elliott Rogers, who spent eight years at Ulta, as executive VP and COO, overseeing supply chain, information technology, and procurement 

Also in November, Andrew Page announced he would step down from his role as CFO to pursue new opportunities after Foot Locker reports its fourth-quarter earnings.  

In other changes, Jed Berger, who served as chief marketing officer of Foot Locker, left the company in August to serve as president of Kenneth Cole.  He joined Foot Locker in 2011.

For its third quarter, ended Oct. 29, Foot Locker reported net income of $96 million, or $1.01 per share, compared with $158 million, or $1.52 per share, in the prior-year period. Total sales decreased by 0.7%, to $2.17 billion on a reported basis. Sales increased 3.3% in constant currency. Comparable-store sales increased by 0.8% against record sales levels last year.

“Foot Locker's solid third-quarter results in the midst of ongoing macroeconomic challenges are a testament to the strengths of this organization that I am honored to now be leading," stated Dillon in the company’s earnings release. "Despite the tough environment, our expanding customer base remained resilient, and I'm proud that our team delivered sales above our expectations, thanks to their exceptional execution."

As of October 29, 2022, the company operated 2,794 stores across 28 countries in North America, Europe, Asia, Australia, and New Zealand. 

In addition, 155 franchised stores were operating in the Middle East and Asia.