Foot Locker stock jumps 15% on strong Q1 earnings
Foot Locker Inc. reported a decline in Q1 2024 sales, with net income for the quarter ending May 4 falling to $8 million, or 9 cents per share, compared to $36 million in the same period the previous year. Sales dropped by about 3% to $1.88 billion from $1.93 billion. Comparable sales declined 1.8%, which was better than the 3.1% drop analysts had anticipated. The company reaffirmed its fiscal year guidance, projecting sales to be in the range of a 1% decline to a 1% increase.
CEO Mary Dillon remains optimistic about the company's turnaround efforts, emphasizing improvements in the digital business, store experience, and brand partnerships, particularly with Nike. However, Foot Locker's shares have fallen 28% year to date. The retailer's Champs Sports banner experienced a significant decline, with comparable sales dropping 13.4% and overall revenue falling nearly 19%. Despite mixed results, investor sentiment saw a boost, with shares rising over 14% in premarket trading following the earnings report. The company plans to refresh a substantial portion of its global Foot Locker and Kids Foot Locker locations over the next few years and is set to officially launch its FLX Rewards loyalty program in Q2.
