**Foot Locker Reports 10% Drop in First-Half Sales**
* Revenue declines to $4.58 billion from $5.07 billion a year ago
* Same-store sales fall 8.5%, marking the third consecutive quarter of negative comparable sales
* Gross margin contracts 160 basis points to 30.9%
* Net income plunges 74.4% to $124 million
Foot Locker, Inc. reported a 10% decline in first-half sales, as the athletic footwear and apparel retailer continues to grapple with a challenging retail environment and the impact of the COVID-19 pandemic.
For the six months ended July 31, 2022, Foot Locker’s net sales decreased to $4.58 billion from $5.07 billion in the prior-year period. Comparable store sales, a key metric for retailers, fell 8.5%, marking the third consecutive quarter of negative comparable sales.
The company attributed the sales decline to several factors, including store closures due to the pandemic, supply chain disruptions, and a shift in consumer spending towards other categories.
Foot Locker’s gross margin contracted 160 basis points to 30.9% in the first half of 2022, primarily due to higher product costs and increased markdowns. As a result, the company’s net income plunged 74.4% to $124 million, or $0.69 per diluted share, from $486 million, or $2.68 per diluted share, a year ago.
Despite the challenging first half, Foot Locker remains optimistic about the future. The company expects sales to improve in the second half of the year, as it benefits from new product launches, marketing campaigns, and store openings.
Foot Locker also plans to focus on improving its e-commerce business, which has become increasingly important in recent years. The company is investing in its digital platform, expanding its product assortment, and improving its shipping and fulfillment capabilities.
In a statement, Foot Locker CEO Richard Johnson said, ‘While our first-half results were below our expectations, we are encouraged by the progress we are making in our strategic initiatives. We believe that our focus on product innovation, digital transformation, and customer experience will drive long-term growth for our company.’
Foot Locker operates over 3,000 stores in 28 countries. The company’s portfolio of brands includes Foot Locker, Kids Foot Locker, Champs Sports, Footaction, and Eastbay..
