Foot Locker reported a record year in its latest earnings report, but the sportswear and footwear retailer anticipates lowered revenue in the financial year ahead.
The company generated $2.3 billion in sales in Q4 2021, a 6% increase year-over-year. Total full-year sales reached $9 billion in FY2021, a 19% increase compared to the fiscal year prior.
Foot Locker has diversified its business through acquisitions and mergers over the past year.
- Last September, it bought athletic apparel retailer Eurostar for $750 million.
- It closed its acquisition of Text Trading Company for $360 million last November.
- The same month, it said it would be merging its Champ Sports and Eastbay brands.
Foot Locker projects revenue to drop in 2022 due to expectations that it will not sell as many products from its top vendor, Nike. The Oregon-based retailer is selling more of its shoes and apparel directly to consumers.
No single vendor will represent more than 55% of Foot Locker’s supplier purchases beginning in Q4 2022, compared to 65% in Q4 2021.
Shares of Foot Locker fell nearly 35% on Friday following the news, erasing roughly $950 million in market value.
In October 2021, Foot Locker announced LCKR, its first private apparel label since exiting the category three years prior. The line is available online and in more than 800 retail locations.
Last December, Foot Locker unveiled Cozi, the company’s first proprietary womenswear brand. Cozi will release seasonal collections throughout 2022, with pieces ranging from $35-$50.