Foot Locker reports a 10% fall in first-half sales

In the first half of its 2023 financial year, the American group Foot Locker‘s sales totalled 3.8 billion dollars (3.5 billion euros), down 10.6% compared with the same period in 2022. From February to July, its net profit fell to 31 million dollars (28.6 million euros), a 86% drop compared to last year.

The company, which operates Foot Locker, Champs Sports, atmos and WSS, posted a second quarter fall of 9.9%, to 1.8 billion dollars, while over the period it recorded losses of 5 million euros (compared with a 105 million profit a year earlier).

In terms of regions, the Group’s activity over these three months held up better in Asia-Pacific (-1.4%) and in the EMEA zone (Europe, Africa, Middle East), with a decline of just 3%, while North America posted a fall of 13%.

“Our second quarter was broadly in line with our expectations, despite a still difficult consumer environment,” commented Chairman Mary Dillon. “We did see a softening in trends in July and are adjusting our 2023 outlook to allow us to best compete for price-sensitive consumers.”

For the full 2023 financial year, the company has revised its targets downwards and now expects sales to be down by 8 to 9%, compared with -6.5 to -8% previously). It has also decided to suspend payment of its quarterly dividend. In New York, the company’s share price plunged by almost 30% in premarket trading before the stock market opened on August 23.

Continuing its policy of downsizing, the group, which operates 2,600 retail outlets, said it closed 108 shops in the second quarter, while opening 15 new locations and remodelling 16 stores.

Chairman Dillon has been working to revive the footwear brand that has been falling behind in recent years. She revealed a plan in March, to open new store formats outside of department stores and focusing on customer loyalty programs. Foot locker hopes to reach 9,5 billion dollars in sales by 2026.