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Foot Locker posts strong full year 2021

Mar 2, 2022 United States
Foot Locker posts strong full year 2021
The retailer announced the results for the fourth quarter and full year 2021. Net income for fiscal 2021 totalled 893 million US dollars, as compared with 323 million US dollars in 2020
"We closed out a record year by delivering solid fourth quarter results that reflect the ongoing momentum we have built in our business in the midst of an evolving market. We made significant progress diversifying our brands, categories and channels in 2021, as well as expanding our customer base across demographics and high-growth geographies with the acquisitions of WSS and atmos. We also invested in our omni-channel platform to accelerate our DTC strategy and enhance the customer experience with new speed and convenience capabilities. And we continue to expand our private label merchandise offerings, including the most recent launch of our new womenswear brand. Our journey to diversify our mix of business and expand our reach as a house of brands and banners is ongoing.  We look forward to continuing to build on the important areas of success from the past year that strengthen our position at the heart of the youth, sports, and sneaker communities”, commented Richard Johnson, Chairman and Chief Executive Officer.

Fourth Quarter Results

In the fourth quarter of fiscal 2021, which ended on the 29th of January 2022, Foot Locker posted net income of 103 million US dollars, or 1.02 US dollars per share, as compared with net income of 123 million US dollars, or 1.17 US dollars per share, in the fourth quarter of fiscal 2020.

Comparable-store sales in this period increased by 0.8%, with apparel exceeding footwear, on a comparable basis to similar period of the prior year. Over this quarter, total sales grew by 6.9%, reaching 2.3 billion US dollars, as compared with sales of 2.2 billion US dollars in the fourth quarter of 2020. Excluding the effect of foreign exchange rate fluctuations, total sales for the fourth quarter increased by 8.2%.

In the fourth quarter of financial 2021, gross margin “remained relatively flat”, shrinking by 10 basis points, on a comparable basis to the same period of financial 2020. The company noted that the result was achieved “with strong merchandise margin gains offset by occupancy deleverage, which primarily reflects the elevated rent abatements in the prior year”.

Fiscal 2021

For 2021, the company reported net income of 893 million US dollars, or 8.61 US dollars per share, which reflects an increase of 179.5% in earnings per share, as compared with net income of 323 million US dollars, or 3.08 US dollars per share, in fiscal 2020. Fiscal earnings per share were up by 91.3%, as compared with earnings per share of 4.50 US dollars in 2019.

Last financial year, comparable-store sales increased by 15.4%, as compared to 2020. Total sales totalled 9.0 billion US dollars in 2021, reflecting growth of 18.7%, as compared with sales of 7.5 billion US dollars in fiscal 2020, and up by 11.9%, as compared with 8 billion US dollars in 2019. Excluding the effect of foreign exchange rate fluctuations, total sales in fiscal 2021 increased by 17.8%.

Store Base Update

As of 29th of January 2022, the company operated 2 858 stores in 28 countries in North America, Europe, Asia, Australia, and New Zealand.  In addition, 142 franchised stores were operating in the Middle East and Asia.


Fiscal 2022 Outlook

"As we look to 2022, Foot Locker, Inc. is operating from a strong financial position and we continue to benefit from substantial flexibility in our real estate portfolio, allowing us to pivot our store footprint more easily as we amplify and optimize our omni-channel offerings. With the help of our external partners, we are looking to drive even more efficiency as we ensure alignment of our capital spend, cost structure and organization design in support of our strategic imperatives”, added Andrew Page, Executive Vice President and Chief Financial Officer.


Image Credits: nssmag.com


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