American firm Foot Locker's revenue at $1,986 mn in Q3 FY23

A key factor in the sales downturn was a decrease in comparable-store sales by 8 per cent. This decline was attributed to ongoing consumer softness, changes in the vendor mix, and a 3 per cent negative impact resulting from the repositioning of Champs Sports.

The company's gross margin fell by 470 basis points compared to the previous year. This decline was mainly driven by increased markdowns, occupancy deleverage, and higher shrink. Additionally, selling, general & administrative expenses increased by 100 basis points as a percentage of sales compared with the prior-year period, the company said in a press release.

Net income for Foot Locker in the third quarter stood at $28 million, a steep decline from the $96 million recorded in the same period last year. The Non-GAAP net income also showed a similar trend, dropping to $28 million from $121 million in the prior-year period.

Earnings per share (EPS) for the quarter were $0.30, compared to $1.01 per share in the third quarter of 2022. Non-GAAP earnings per share also decreased to $0.30 per share from $1.27 per share in the corresponding prior-year period, reflecting the broader challenges the company faced during this period.

"We delivered third quarter results that were ahead of our expectations as strong execution and early progress against our Lace Up plan improved conversion trends across channels.  Looking forward, we are updating our outlook to reflect the momentum we have in our strategic initiatives into the fourth quarter, which includes strong results over the Thanksgiving week period, against the backdrop of ongoing consumer uncertainty.  As such, we are narrowing our 2023 outlook and still expect to end the year with inventory levels flat to down slightly, as compared with the prior year," said Mary Dillon, president and chief executive officer.

Fibre2Fashion News Desk (DP)