Foot Locker returns to sales growth; plans to relocate HQ to Florida, shutter ops in several international markets in 2025

Posted by Admin August 29, 2024 Fashion

Foot Locker announced on Wednesday a return to sales growth in the second quarter, up 1.9% to $1.9 billion, with the U.S. firm revealing plans to relocate its headquarters and shutter operations in several markets.

Foot Locker- Facebook

The New York City-headquartered specialty footwear retailer said comparable sales increased by 2.6%, led by global Foot Locker and Kids Foot Locker comparable sales growth of 5.2%, partially offset by a 3.9% sales decline at its improving Champ Sports banner.

Second quarter net loss was $12 million, as compared with a net loss of $5 million in the corresponding prior-year period.

“The Lace Up Plan is working, as evidenced by our return to positive total and comparable sales growth as well as gross margin expansion in the second quarter. Our top line trends strengthened as we moved through the quarter, including a solid start to Back-to-School,” said Mary Dillon, president and chief executive officer, Foot Locker.

“We were also particularly pleased to deliver stabilization in our Champs Sports banner. As planned, we relaunched our enhanced FLX Rewards Program in the United States during the quarter and have been encouraged by initial results. Our strategies are building momentum as we look to the remainder of the year, and we are reaffirming our full-year Non-GAAP EPS outlook.”

Coinciding with the earnings update, Foot Locker revealed plans to relocate its NYC headquarters to St. Petersburg, Florida, in late 2025, with the company looking to decrease its presence in the Big Apple. Still in the U.S., Foot Locker said it also plans to open a new tech hub in Dallas, Texas.

Internationally, Foot Locker said it will shut down stores and e-commerce operations in South Korea, Denmark, Norway and Sweden while expanding operation in Greece, South East Europe and Romania via a licensing partner, Fourlis Group.

The above will result in the closure or transfer of operations for approximately 30 stores of the company’s 140 stores in Asia Pacific and 629 stores in Europe, expected to be completed by mid-2025.