0.08%Shares in Foot Locker (FL) were down 10% yesterday after the sneaker retailer downgraded its outlook for fiscal 2024 following weaker Q3 sales.
If you’ve walked down a high street, or a shopping mall, in a major city or town across the UK, Europe or the USA over the last 30 years then the chances are you’ve walked past a Foot Locker. The iconic American sports referee inspired uniforms and walls clad with basketball sneakers that previously could only be purchased from authorised stockists like Foot Locker. However with economic uncertainty, changing sneaker trends and an ever growing resale market, Foot Locker has seen a decline in sales for the last year and a half, announcing previously their plans to streamline their business operations with cost cutting incentives to close 400 stores by 2026. Earlier in the year Footlocker also announced they were moving their headquarters to Florida in a bid to further reduce operating costs. With the continued retail headwinds & global uncertainty Footlocker’s Q3 2024 sales fell slightly short of analyst expectations.
Foot Locker reported a 1.4% decrease in revenue for Q3 2024 of $1.958 billion which was slightly below analyst expectations of $2 billion. Earnings per share also fell below analyst expectations at $0.33 compared to $0.44. Comparable sales were however up 2.4% for the quarter. Yesterday Foot Locker downgraded its outlook for fiscal 2024, as a result shares in the sneaker retailer dropped 10%. Footlocker now expects sales to be down between 1% & 1.5% with expected EPS (earnings per share) in the range of $1.20 to $1.30.
Moving forward Foot Locker are also looking to work closely with Nike, who still represent around 40% of the retailers stock, to push newer silhouettes like the Zoom Vomero & the recently launched Air DT Max. The short term turbulence, as quoted by Foot Locker’s Chief Commercial officer Frank Brecken, has seen a softer demand for classic Nike sneakers in the run up to the Xmas period. Also don’t forget to subscribe to Sneaker Jobs & follow @sneaker_jobs to keep up to date with all the latest industry news.
