Foot Locker posts strong sales growth, announces closure of Footaction stores

By

Robin Driver

Published
May 22, 2021

American sports and footwear retailer Foot Locker reported total first-quarter sales of $2.15 billion on Friday, an increase of 83.1% from $1.18 billion in Q1 2020. In constant currencies, growth was 79.4%. The company also announced that it will close the majority of its remaining Footaction stores over the next two years.

 
The sharp rise in the New York-based company’s sales in the first quarter ended May 1, 2021, was partially due to the fact that the prior-year period was strongly negatively affected by the Covid-19 pandemic. However, the retailer’s latest quarterly revenues also represented a 3.6% increase compared to its sales in Q1 2019.
 
Net income for the quarter was $202 million, or $1.93 per share, compared to a net loss of $110 million, or $1.06 per share, in the same period in the previous year.

“I am extremely pleased with the strength of our performance in the first quarter, compared not only to last year's heavily Covid impacted first quarter, but also relative to the first quarter of 2019,” said Foot Locker chairman and CEO Richard Johnson in a release. “Our merchandise offering resonated very well with our customers, driving strength in our stores and continued momentum in our digital business.”
 
Foot Locker currently operates 1,952 stores in 27 countries across North America, Europe, Asia, Australia and New Zealand, and also boasts 131 franchise locations in the Middle East.
 
As part of an ongoing strategy to better position its store fleet, Foot Locker said that it is converting approximately a third of its Footaction lifestyle locations into existing banner concepts over the course of this year. The majority of the remaining two-thirds will be shuttered as leases expire in the next two years.
 
Due to continued uncertainty about the evolution of the Covid-19 pandemic, Foot Locker has not provided full-year financial guidance for fiscal 2021.