World Footwear

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Foot Locker: third quarter marked by sales growth

Nov 23, 2020 United States
Foot Locker: third quarter marked by sales growth
Third quarter comparable-store sales increased by 7.7% and total sales were up by 9.0% in the same period. Notwithstanding the good performance in the last quarter, year-to-date total sales and comparable-store sales are still down
"We delivered a strong top-and bottom-line performance in the third quarter, underscoring the strength of our in-store and online product assortments and the resilience of the Foot Locker, Inc. brands. Although the back-to-school selling season kicked in later than usual due to COVID-19-related delays, momentum built as the quarter progressed, and we were pleased with our customers' continued strong engagement across our family of brands. Our teams again executed well in a dynamic environment and did a tremendous job maintaining a seamless, safe, and exciting shopping experience for our customers", commented Richard Johnson, Chairman and Chief Executive Officer. 

Third Quarter Results

Net income for the Foot Locker's third quarter of 2020 reached 265 million US dollars, or 2.52 US dollars per share, compared to net income of 125 million US dollars, or 1.16 US dollars per share in the corresponding prior-year period. Third quarter comparable-store sales increased by 7.7%. Total third quarter sales increased by 9.0%, totalling 2 106 million US dollars, compared to sales of 1 932 million US dollars for the corresponding prior-year period. Excluding the effect of foreign exchange rate fluctuations, total sales for the third quarter of 2020 increased by 7.7%.

Year-To-Date Results

For the first nine months of the year, the company posted net income of 200 million US dollars, or 1.91 US dollars per share on a GAAP basis, compared to net income of 357 million US dollars, or 3.23 US dollars per share, for the corresponding period in 2019. Year-to-date sales reached 5 359 million US dollars, a decrease of 7.3% compared to sales of 5 784 million US dollars in the corresponding prior-year period. Year-to-date, comparable store sales decreased by 7.1% and total year-to-date sales excluding the effect of foreign currency fluctuations decreased by 7.5%.

Financial Outlook

As previously announced, the company withdrew its full-year 2020 guidance in March. Given the ongoing uncertainty created by COVID-19, Foot Locker is not providing full-year 2020 guidance at this time.

Network of Stores

During the third quarter, the US-based footwear giant opened 27 new stores, remodelled or relocated 8 stores, and closed 95 stores, including 70 Runners Point stores.  As of the 31st of October 2020, the company operated 3 032 stores in 27 countries in North America, Europe, Asia, Australia, and New Zealand. In addition, 126 franchised Foot Locker stores were operating in the Middle East.

Image credits: Priscilla Du Preez on Unsplash

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