American firm Foot Locker's sales rise to $8.75 bn in FY23

07 Mar '24

2 min read

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Insights

Foot Locker reported FY23 sales of $8.75 billion, up from FY22's $8.15 billion.
In Q4 FY23, the company saw a 2 per cent rise in sales to $2.38 billion, with a slight 0.7 per cent dip in comparable sales.
Despite a 5.2 per cent rise in specific banner sales, gross margin in Q4 dropped.
Foot Locker faced a net loss of $389 million in Q4 FY23.

New York-based specialty athletic retailer Foot Locker, Inc, has reported a rise in annual sales to $8.75 billion in fiscal 2023 (FY23), compared to $8.15 billion in fiscal 2022. In the fourth quarter of fiscal 2023, total sales, including the benefit of a 53rd week, saw a modest increase of 2 per cent to $2.38 billion compared to $2.33 billion in the same period last year. When adjusted for foreign exchange rate fluctuations, fourth-quarter sales grew by 1.5 per cent.

However, comparable sales slightly declined by 0.7 per cent in Q4 FY23. Notably, the Foot Locker and Kids Foot Locker North American banners experienced a combined comparable sales increase of 5.2 per cent, highlighting strengths in specific market segments, the company said in a press release.

The gross margin for the quarter fell by 350 basis points compared to the prior year, primarily due to higher markdowns, though partially mitigated by occupancy leverage. The company's selling, general, and administrative expenses as a percentage of sales inched up by 10 basis points year-over-year.

The fourth quarter presented a stark contrast to the previous year's profitability, reporting a net loss of $389 million compared to net income of $19 million in the fourth quarter of fiscal 2022. Adjusting for specific non-GAAP items, net income stood at $36 million, down from $92 million in the prior-year period. Diluted loss per share was reported at $4.13, a significant shift from earnings per share of $0.20 in the fourth quarter of FY22.

"We are pleased to report fourth quarter results ahead of our expectations, including meaningfully accelerated sales trends relative to the third quarter, earnings per share that exceeded our guidance range, and improvements across multiple KPIs. As we continued to deliver on the strategic imperatives of our Lace Up Plan, we built significant momentum through the holiday season, driven by full-price selling in addition to compelling promotions. We also proactively reinvested in markdowns to end the year with leaner inventory levels compared to our expectations," said Mary Dillon, president and chief executive officer.

Fibre2Fashion News Desk (DP)

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