US specialty retailer Foot Locker posts moderate third quarter results

27 Nov '21

2 min read

Pic: Foot Locker

Foot Locker, a US-based specialty athletic retailer, has posted a 3.9 per cent surge in sales to $2.2 billion in the third quarter (Q3) of FY21 ended on October 30, 2021, compared to the sales of $2.1 billion in the corresponding period of prior year, and up 13.3 per cent up against Q3 of 2019. However, net income slipped during the three-month period to $158 million (Q3 FY20: $265 million).

“The third quarter was another period of strong performance for our company that reflects the powerful connectivity we have built with our customers,” Richard Johnson, chairman and chief executive officer at Foot Locker, said in a press release.

“These impressive top and bottom-line results were against a robust back-to-school season from last year and in spite of the ongoing supply chain challenges. On top of that, we successfully completed the acquisition of WSS in the third quarter, and subsequently closed the atmos transaction as well, welcoming both of these great teams to the Foot Locker family,” Johnson continued.

The American retailer’s cost of sales during Q3 remained flat to $1.4 billion, while selling, general & administrative expenses totalled to $458 million ($424 million). Income from operations rose to $196 million ($178 million).

During the third quarter, Foot Locker opened 32 new stores, remodelled or relocated 29 stores, closed 80 stores, according to the company.

“The combination of robust demand and fresh inventory, coupled with more full-priced selling, led to gross margin expansion of 380 basis points to 34.7 per cent, from the 30.9 per cent in the prior year period,” Andrew Page, executive vice president and chief financial officer at Foot Locker said.

“We expect global supply chain constraints to persist throughout the fourth quarter; that said, we believe we are positioned for the holiday season, with positive momentum and inventory levels ready to meet customer demand,” Page concluded.

Fibre2Fashion News Desk (JL)

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