Foot Locker’s stock dropped 27% on Friday after the company reported an 11.4% drop in sales for the quarter.
The retailer’s total sales for Q1 2023 were $1.92 billion compared to $2.17 billion year-over-year. Net income for the three-month period ending April 29 was $36 million — a sharp drop from the $132 million reported for the period in 2022.
CEO Mary Dillon attributed Foot Locker’s sales decline to the “tough macroeconomic backdrop” that forced the company to lower product prices to “both drive demand and manage inventory.”
In March, Foot Locker said it will close 400 U.S. retail stores by 2026, and close another 125 stores operated by its Champs Sports subsidiary. In their absence, Foot Locker announced its “Lace Up” sales strategy, in which the company will open 250 new “concept” retail stores targeting locations in communities drawn to sneaker culture.
In an attempt to rejuvenate sales, Foot Locker plans to partner with Nike to feature more LeBron James and Kevin Durant retro shoes this holiday season. While Foot Locker joins many retailers in struggling with the modern economic climate, the Swoosh’s Q3 revenues, announced in March, grew 14% year-over-year.