Foot Locker, Inc. reported a 2.8% decrease in total sales to $1.87 billion in Q1 FY24, down from $1.92 billion in Q1 FY23. Excluding foreign exchange rate fluctuations, sales decreased by 2.4%. Comparable sales decreased by 1.8%, with a 220 basis-point impact from the repositioning of Champs Sports. Global Foot Locker and kids Foot Locker saw a 1.1% increase in comparable sales.
The company’s gross margin decreased by 120 basis points from the previous year, while selling, general, and administrative expenses as a percentage of sales rose by 220 basis points.
Foot Locker reported a decrease in net income for the first quarter, with $8 million compared to $36 million in the prior year. Non-GAAP net income was $21 million, down from $66 million. Earnings per share were $0.09, a decrease from $0.38, and non-GAAP EPS decreased to $0.22 from $0.70. The company’s performance was attributed to a solid start to the year and the success of their Lace Up Plan. Despite the lower earnings, they delivered comparable sales and gross margins as expected. Looking ahead, Foot Locker is confident in their position with fresh assortments for the upcoming summer and back-to-school seasons, reaffirming their full-year outlook.
