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Foot Locker reports better-than-expected comparable store sales in the second quarter

Foot Locker reports better-than-expected comparable store sales in the second quarter

In the second quarter of the fiscal year, shoe retailer Foot Locker increased its sales in stores by 2.6 percent, beating analysts’ expectations of 0.7 percent. Total sales reached $1.9 billion, an increase of 2 percent over the same period last year.

“Our sales trends improved throughout the quarter, including a solid start to the back-to-school season,” CEO Mary Dillon said in a press release. “We are also particularly pleased with the stabilization of our Champs Sports banner.”

In the quarter ended August 3, Champs, a Foot Locker company, reported a comparable sales decline of 3.9%, but that’s much better than the 25.3% decline a year ago.

While sales in the stores rose for the first time in six quarters, Foot Locker posted a loss of $12 million in the quarter, or about 13 cents per share. In the second quarter of the previous year, the sneaker giant posted a loss of $5 million.

In March 2023, Foot Locker announced a turnaround strategy called the Lace Up Plan. Since then, the company has been introducing new store formats, targeting its marketing efforts at specific demographics, and implementing measures to improve customer service.

“With our Lace Up Plan, we are unlocking significant opportunities for our business by leveraging our strong brand partnerships, differentiating the in-store shopping experience through refreshes and new concept doors, and enhancing our customer connections digitally and through loyalty,” said Dillion.

This year alone, nearly $275 million will be spent renovating various Foot Locker stores. By the end of fiscal 2025, the company hopes to have remodeled about two-thirds of its stores. Foot Locker is also moving out of its New York headquarters and moving to St. Petersburg, Florida.

To cut costs, Foot Locker will close several stores in Korea, Denmark, Norway and Sweden. In Asia Pacific, 30 locations will close, while 629 European stores will either close or be placed under new management. About 400 underperforming North American locations will also close by 2026.

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