Foot Locker Posts Better-Than-Expected Second Quarter Same-Store Sales

In the fiscal second quarter, shoe retailer Foot Locker grew same-store sales by 2.6%, stomping analysts’ expectations of 0.7%. Total revenue reached $1.9 billion, an increase of 2% from the same period last year.

“Our top line trends strengthened as we moved through the quarter, including a solid start to Back-to-School,” CEO Mary Dillon said in a press release. “We were also particularly pleased to deliver stabilization in our Champs Sports banner.” 

For the quarter ending Aug. 3, Foot Locker-owned Champs saw comparable sales fall by 3.9%. Yet, this is much better than the 25.3% drop from a year ago.

While same-store sales were up for the first time in six quarters, Foot Locker lost $12 million, about 13 cents per share, for the quarter. During the second quarter last year, the sneaker giant was $5 million in the red.

In March 2023, Foot Locker announced a turnaround strategy named the Lace Up Plan. Since then, the company has been introducing new store formats, redirecting marketing efforts to target certain demographics, and implementing ways to improve customer service.

“Through our Lace Up Plan, we are unlocking meaningful opportunities for our business as we are leveraging our strong brand partnerships, differentiating our in-store experiences through refreshes and new concept doors, and enhancing our customer connections via digital and loyalty,” Dillion stated.

Nearly $275 million will be spent this year alone to renovate various Foot Locker locations. Before the end of fiscal 2025, the company hopes to have about two-thirds of its stores remodeled. Foot Locker is also moving out of its New York headquarters and relocating to St. Petersburg, Florida.

In an effort to reduce costs, Foot Locker will close multiple stores in Korea, Denmark, Norway, and Sweden. In the Asia-Pacific region, 30 locations will be shuttered, while 629 European stores will either be closed or placed under new management. About 400 underperforming North American locations will also be closed by 2026.