Foot Locker lifts guidance despite fall in Q3 sales
Total sales were still above expectations of $2.09bn (£1.77bn)
Footwear retailer Foot Locker has raised its FY guidance despite seeing a fall in sales and net income during the third quarter.
For the 13-week period ending 29 October 2022, the company reported net income of $96m (£81.2m) compared with $158m (£133.7m) the prior-year period.
Meanwhile, it confirmed third quarter comparable-store sales increased by 0.8% against record sales levels last year, driven by “strong demand, the company’s brand diversification efforts, and improved access to high-quality inventory”.
However, total sales decreased by 0.7%, to $2.173bn (£1.83bn), compared with sales of $2.189bn (£1.85bn) in the third quarter of 2021. Excluding the effect of foreign exchange rate fluctuations, total sales for the third quarter increased by 3.3%.
Despite this, total sales were still above expectations of $2.09bn (£1.77bn).
As a result Foot Locker lifted its expectations for the full 2022 year to between $4.42 and $4.50 (£3.74-£3.80), from $4.25-$4.45 (£3.59-£3.76) previously.
Mary Dillon, president and CEO, said: “Foot Locker’s solid third quarter results in the midst of ongoing macroeconomic challenges are a testament to the strengths of this organisation that I am honoured to now be leading.
“Despite the tough environment, our expanding customer base remained resilient, and I’m proud that our team delivered sales above our expectations, thanks to their exceptional execution. I see tremendous opportunity to further leverage the power of our brand equity and our incredible field team to drive our growth in this exciting category.”
