Foot Locker sales inch forward in 2022, reveals transformation plan

By

Benjamin Fitzgerald

Published
Mar 20, 2023

Foot Locker Inc. announced on Monday net sales for the year 2022 inched forward 0.9% to $8.75 billion compared to 2021, on the back of a solid fourth quarter that clocked strong comps growth to end the year.  

The New York-based company said sale for the quarter ending January 28 decreased by 0.3%, to $2.33 billion, despot comparable-store sales growing by 4.2%, driven by increased traffic and improved access to high-quality inventory, resulting in broad-based strength across brands and regions.

Net income decreased to $19 million, as compared with $103 million in the fourth quarter of fiscal 2021.

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"Our team delivered a great finish to the year with strong fourth quarter results that capitalized on resilient Holiday demand and a compelling assortment and inventory position from our brand partners," said Mary Dillon, president and chief executive officer.

The company also revealed its new 'Lace Up' strategic plan for ​for fiscal years 2024 through 2026. As part of the plan, Foot Locker said it plans to expand sneaker culture and serve more sneaker occasions, provide more choice, and drive greater distinction; and power-up its portfolio, by creating more distinction among banners, including re-launching the Foot Locker brand, and by opening new formats, shifting off-mall, and closing underperforming stores.

It also plans to reset the company's loyalty program and elevate the customer relationship through enhanced analytical capabilities. Finally, the specialty footwear retailer said it wants to improve the customer experience online.

"We are entering 2023 with a focus on resetting the business – simplifying our operations and investing in our core banners and capabilities to position the company for growth in 2024 and beyond," concluded Dillon.

For fiscal 2024 to 2026, Foot Locker said it expects total sales growth of 5% to 6%, and comparable sales growth of 3% to 4%.