Foot Locker Q1 profits dip as sales inch forward

By

Benjamin Fitzgerald

Published
May 23, 2022

Foot Locker announced on Friday revenues for the first quarter inched forward 1%, partially offset by a 2% decline in comparable sales, as the footwear retailer recorded a dip in profits for the three months.  

The New York-based company said total sales reached $​2.175 billion for the quarter ending April 30, compared to $2.153 billion for the corresponding prior-year period.

However, the company reported net income fell to $133 million, or $1.37 per share, for the 13-week period, compared with net income of $202 million, or $1.93 per share.

"We are off to a strong start in 2022, reporting a solid quarter against the tough comparisons of fiscal stimulus and historically-low promotions from last year," said Richard Johnson, chairman and chief executive officer. 

"Our progress in broadening and enriching our assortment continues, as we continue to meet our customers' demand for choice. These efforts helped drive our strong results in the first quarter, and we believe will allow us to more fully participate in the robust growth of our category going forward."

First quarter comparable-store sales decreased by 1.9%, with apparel significantly outpacing footwear, the company said, adding it opened 24 new stores, remodeled or relocated 23 stores, and closed 67 stores during the quarter.

"As we elevate brands across our portfolio, continue to use our real estate flexibility to optimize our footprint, and evolve our omni-channel capabilities, we are excited about our improving ability to expand our customer base and fuel our consumer's desire for self-expression," said Johnson.

Looking ahead, Foot Locker said it expects adjusted earnings for the fiscal year at the high end of guidance of $4.25 to $4.60 a share. It expects sales at the high of down 4% to down 6%.

"Following our solid results from the first quarter, our strong inventory position going into the remainder of the year, and our strengthening vendor relationships, based on our current visibility, we now expect to achieve the upper end of our revenue and earnings guidance for the full year."