US-based sports and footwear retailer Foot Locker has generated $1.92bn in sales in the first quarter (Q1) of fiscal 2023 (FY23).
The figure is down by 11.4% from $2.17bn in the corresponding period of FY22.
The retailer’s comparable-store sales for the quarter also declined by 9.1% due to macroeconomic headwinds like the lower income tax refunds in the US.
For the quarter ending 29 April 2023, Foot Locker’s gross margin decreased by 400 basis points (bps) against the prior year’s quarter.
Its net income was $36m in Q1 FY23 against $133m in the same period in FY22 and non-GAAP net income also decreased to $66m over the quarter from $155m a year ago.
Foot Locker reported earnings per share (EPS) of $0.38 in the quarter compared with $1.37 in Q1 FY22.
Foot Locker president and chief executive officer Mary Dillon said: “Coming off the recent launch of our Lace Up Strategy at our Investor Day in March, we are making early progress in building a strong foundation to return to sustainable growth beyond this year.
“However, our sales have since softened meaningfully given the tough macroeconomic backdrop, causing us to reduce our guidance for the year as we take more aggressive markdowns to drive demand and manage inventory.
“Despite the challenging near-term trends, we remain committed to our long-term strategy, including making the necessary investments to drive our Lace Up plan and maintain conviction in our ability to execute against our new strategic imperatives.”
For FY23, Foot Locker expects its sales to decline by 6.5% to 8.0% and comparable sales to drop by 7.5% to 9.0%.
The retailer operated 2,692 stores in 29 countries and 163 franchised stores as of the end of the quarter.
In a separate development, the retailer appointed Mike Baughn as executive vice-president and chief financial officer; effective from 12 June 2023.