Foot Locker earnings, sales exceed expectations; updates 2022 guidance

By

Benjamin Fitzgerald

Published
Nov 21, 2022

Foot Locker announced on Friday that revenues and earnings for the third quarter exceeded expectations, despite a "tough environment" that saw its sale and profits decline during the three months ending October 29. 

The U.S. specialty footwear retailer said total sales during the quarter decreased by 0.7%, to $2.17 billion, compared with sales of $2.19 billion in the third quarter of 2021. Excluding the effect of foreign exchange rate fluctuations, total sales for the third quarter increased by 3.3%, said the New York-based company.

Comparable-store sales increased by 0.8% against record sales levels last year, driven by strong demand, brand diversification efforts, and improved access to high-quality inventory.

Meanwhile, net income fell to $96 million, or $1.01 per share, for the 13-week period, compared with $158 million, or $1.52 per share, for the corresponding prior-year period.

"Foot Locker's solid third quarter results in the midst of ongoing macroeconomic challenges are a testament to the strengths of this organization that I am honored to now be leading," said Mary Dillon, president and chief executive officer.

"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."

Looking ahead, Foot Locker said it has lifted its full-year guidance, "following better-than-expected results for the third quarter and strong momentum coming out of the quarter," said ​Andrew Page, executive vice president and chief financial officer.

"While the macroeconomic environment remains uncertain, our demand trends, and inventory position in high-quality product gives us confidence we can achieve our new range, while also remaining flexible to manage through ongoing volatility," added Page.

Foot Locker now expects full-year sales to drop 4% to 5%, compared to a drop of 6% to 7%.