Foot Locker Takes A Step Back in Q2

Foot Locker posted lackluster results for its second-quarter earnings report. 

The sportswear and athletic footwear retailer generated $2.07 billion in revenue in Q2 2022 — down from $2.28 billion for the same period last year — but surpassed analysts’ estimates by 0.62%. 

• Net income reached $94 million in Q2 2022, compared to $430 million in Q2 2021.
• The company earned $1.10 per share, beating estimates of $0.75 per share.
• It saw comparable-store sales decline by 10.3% year-over-year during the quarter.
• The company has seen its shares tumble roughly 27% since the start of FY2022. 

Foot Locker, which operates 2,799 brick-and-mortar locations in 28 countries as of July 30, and opened 34 new stores and remodeled or relocated 24 stores in Q2, but closed 50 locations.

The New York-based company will look to improve under new leadership with the appointment of retail industry veteran and former Ulta Beauty CEO and executive chair Mary Dillon to CEO. 

Dillon will replace the retiring Richard Johnson on Sept. 1. 

Expanding Reach 

On Friday, Foot Locker secured a long-term deal with Fanatics — known for its sportswear merchandising and retail — in which the latter will fulfill Foot Locker’s online orders.

Starting this fall, Foot Locker’s online shoppers will have access to a portion of Fanatics’ inventory, including merchandise featuring NFL, NBA, MLB, NHL, WNBA, and NCAA teams.