Foot Locker Inc reported a net loss of $330m versus a $341m profit a year earlier.
Operating income fell to $142m from $581m year on year. And sales for the year decreased to $8.15bn from $8.75bn.

Comparable sales in the fourth quarter fell 0.7% driven by a 210 basis-point impact from repositioning the Champs Sports banner, consumer softness, and changing vendor mix.

While gross margin declined by 350 basis points in the fourth quarter, compared to the prior-year period, primarily as a result of higher markdowns, this was partially offset by occupancy leverage.

Fourth quarter net loss was $389m, compared with net income of $19m in the corresponding prior-year period.

Mary Dillon, president and CEO, commented, “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. As we continued to deliver on the strategic imperatives of our Lace-Up Plan, 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.”

Dillon 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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“We are especially excited about strengthening our basketball leadership position, including a successful activation at NBA All-Star 2024. To further build on our progress, we are leaning into strategic investments in digital, store experience, loyalty, and brand-building in 2024. The Foot Locker brand will celebrate its 50th anniversary later this year, and we are confident that our Lace-Up Plan is positioning the company for longer-term sustainable growth and shareholder value creation, while laying the right foundation for our next 50 years of success.”

In August Foot Locker reviewed its FY forecast noting a slow Q2 on the back of a challenging footwear market.