Foot Locker records lacklustre sales, CEO to retire

By

Benjamin Fitzgerald

Published
Aug 22, 2022

Foot Locker announced on Friday lacklustre financial results for the second quarter ending July 30, coinciding with the news the specialty footwear retailer has appointed a new CEO.

The New York-based retailer said total revenues for the second quarter fell by by 9.2%, to $2.065 billion, compared with sales of $2.275 billion in the second quarter of 2021. Excluding
the effect of foreign exchange rate fluctuations, total sales for the second quarter decreased by 6.1%.

Comparable sales decreased by 10.3% "versus record sales levels from last year," the company added.

Net income plunged to $94 million, or $0.99 per share, for the 13-week period, compared with net income of $430 million, or $4.09 per share, for the corresponding prior-year period.

“Despite an increasingly challenging macroeconomic backdrop, we delivered a solid quarter against the favorable fiscal stimulus and promotional environment from last year. Driven by strong execution from our team and ongoing progress against our key objectives, we grew our sales 16.4% above levels from 2019," said Richard (Dick) Johnson, chairman and chief executive officer.

“Our strategy of diversifying our brand portfolio and offering more choice continues to resonate with consumers and is enabling us to expand our customer base. We are confident that our operational excellence, our improving ability to fuel our customer’s desire for self-expression, and the secular trends driving our categories, put us in a strong position to navigate the expected ongoing macroeconomic headwinds in the back half of 2022.”

Coinciding with the financial update, Foot Locker said Johnson will retire as president and chief executive officer, effective September 1, 2022. Mary Dillon, former executive chair and CEO of Ulta Beauty Inc., has been appointed president and chief executive officer and a member of the Foot Locker Board, also effective September 1.

“I am thrilled to be joining Foot Locker, an iconic company that possesses a strong set of
values and focus on the customer experience as well as tremendous growth opportunities," said Dillon.

"It is clear how Foot Locker sits at the heart of the global sport and sneaker community, and I am excited to become part of the company’s team. I look forward to working closely with Dick to ensure a smooth transition, and to partnering with the board, leadership team and nearly 50,000 team members around the world to build on Foot Locker’s strong foundation and help shape the company’s future.”