Foot Locker can grow again

After the company had to accept a sales decline of 2.8% (-1.8% on a comparable basis) in the first quarter, Foot Locker was able to present an increase of 1.9% (+2.6% on a comparable basis) for the second quarter, which ended on August 3. The company sees this as confirmation that the “Lace Up Plan” to emerge from the crisis is working. The plan includes, among other things, the relaunch of the FLX reward program in the United States, with the initial results of which Foot Locker is satisfied. Internationally, some stores were closed in order to concentrate on the most important regions. Among other things, the stores and e-commerce activities in Denmark, Norway, Sweden and South Korea were discontinued. Foot Locker plans to move its headquarters from New York to St. Petersburg, Florida, at the end of 2025. After that, there will only be a small presence at the old company headquarters.

The gross margin increased by 50 basis points. However, the net loss worsened from USD 5 million to USD 12 million, and the diluted loss per share decreased from USD 0.05 to USD 0.13. Overall, the second quarter confirmed the annual forecast, which will remain at -1% to +1% sales compared to the previous year.