Foot Locker (NYSE:) reported a narrower-than-expected loss for the second quarter of 2024, with gross sales barely beating estimates, however shares fell greater than 10% following the outcomes.
The specialty athletic retailer posted an adjusted lack of $0.05 per share for the quarter ended August 3, in comparison with the consensus estimate of a $0.08 loss. Income rose 1.9% YoY to $1.9 billion, edging previous the consensus estimate of $1.89 billion.
Comparable gross sales elevated 2.6%, led by world Foot Locker and Children Foot Locker comparable gross sales development of 5.2%. The corporate’s gross margin expanded by 50 foundation factors YoY to 29.5-29.7%.
“The Lace Up Plan is working, as evidenced by our return to constructive complete and comparable gross sales development in addition to gross margin enlargement within the second quarter,” mentioned Mary Dillon, President and CEO of Foot Locker.
Foot Locker reaffirmed its full-year 2024 adjusted EPS outlook of $1.50 to $1.70, which features a $0.09 drag from a non-recurring FLX Rewards Program cost. The corporate expects comparable gross sales to develop 1% to three% for the 12 months.
As a part of its strategic updates, Foot Locker introduced plans to streamline its worldwide operations by closing shops in South Korea, Denmark, Norway, and Sweden. The corporate additionally plans to relocate its world headquarters to St. Petersburg, Florida in late 2025.
