1. News
May 23, 2022

Foot Locker reports total sales increase of 1.0% in Q1 2022

The company anticipates comparable sales growth of between 8% and 10% for the full year.

US-based speciality athletic retailer Foot Locker has reported that its total sales in the first quarter (Q1) of the fiscal year 2022 (FY22) grew by 1.0% year-on-year to $2.17bn.

The retailer’s total sales for the three months to 30 April, excluding the effect of foreign exchange rate fluctuations, increased by 3.0%.

Foot Locker’s Q1 comparable-store sales were down by 1.9% after its sales of apparel ‘significantly’ outperformed those of its footwear.

The company reported that its net income for the 13-week period decreased to $133m from $202m in the same period of the previous year.

Its earnings per share (EPS) also dropped to $1.37 from $1.93 in the prior-year period.

Due to higher supply chain costs and slightly higher markdowns, the company’s gross margin declined by 80 basis points from a year earlier.

Foot Locker chairman and CEO Richard Johnson said: “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.

“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.”

“As we elevate brands across our portfolio, continue to use our real estate flexibility to optimise our footprint, and evolve our omni-channel capabilities, we are excited about our improving ability to expand our customer base and fuel our consumers’ desire for self-expression.”

For the full year, Foot Locker anticipates comparable sales growth in the upper end of down by 8% to 10% and a gross margin of between 30.6% and 30.8%.

Earlier this month, the company entered a strategic partnership with adidas, becoming the lead partner for adidas’ basketball category in the process.