Foot Locker has reported a net loss of $389m (£304.8m) for the fourth quarter ended 3 February 2024, one year into the footwear and clothing retailer’s turnaround strategy.
The loss comes after the group reported a net income of $19m (£14m) in the previous year’s Q4, which was caused by “non-cash charges of $478m (£373m) related to the company’s minority investments and $75m (£59) related to the company’s partial settlement of its pension plan obligations”.
That said, the retailer also saw a 2% rise in total sales to $2.38bn (£1.85bn), compared with sales of $2.33bn (£1.81bn) in Q4 of 2022.
However, comparable sales fell 0.7%, which the group attributed to the repositioning of its Champs Sports fascia, a US sportswear retailer that operates as a subsidiary of Foot Locker, as well as consumer softness and a changing vendor mix.
During Q4, Foot Locker opened 29 new stores, remodelled or relocated 66 stores, and closed a total of 113 stores.
As of 3 February 2024, the retailer operated 2,523 stores in 26 countries in North America, Europe, Asia, Australia and New Zealand. In addition, 202 licensed stores were operating in the Middle East and Asia.
Mary Dillon, president and CEO of Foot Locker, said: “We are pleased to report fourth quarter results ahead of our expectations, including meaningfully accelerated sales trends relative to the third quarter, earnings per share that exceeded our guidance range, and improvements across multiple KPIs.
“We built significant momentum through the holiday season, driven by full-price selling in addition to compelling promotions. We also proactively reinvested in markdowns to end the year with leaner inventory levels compared to our expectations.”
She added: “As we continue evolving into a modern, omnichannel retailer for ‘all things sneakers,’ we are making important progress strengthening our brand partnerships, increasing customer engagement, transforming our real estate footprint, and driving growth in digital.”
