Foot Locker, Inc. has recently released its 10-Q report, providing a detailed look into its financial performance. The company operates as a footwear and apparel retailer in various regions, including North America, Europe, Australia, New Zealand, Asia, and the Middle East. Its brand portfolio includes Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos. The company operates physical stores, e-commerce sites, and mobile apps, with a strong focus on omni-channel capabilities.
In the second quarter of 2024, Foot Locker, Inc. enhanced its loyalty FLX Rewards program across North America and plans to expand it to other geographies. This program introduced FLX Cash, enabling customers to use points towards a discount on purchases and other member-exclusive benefits. The company also announced its decision to exit underperforming operations in South Korea, Denmark, Norway, and Sweden, with plans to close all stores in those regions by mid-2025. Additionally, Foot Locker, Inc. is relocating its global headquarters to St. Petersburg, Florida, in late 2025.
As of August 3, 2024, Foot Locker, Inc. operated 2,464 stores, and a total of 213 licensed stores were operating in the Middle East and Asia. The company evaluates its performance based on division profit, which reflects income before income taxes, impairment and other charges, corporate expenses, non-operating income, and net interest expense.
For the thirteen weeks ended August 3, 2024, total sales increased by $35 million, or 1.9%, to $1,896 million compared to the corresponding prior-year period. However, for the twenty-six weeks ended August 3, 2024, total sales decreased by $18 million, or 0.5%, to $3,770 million compared to the corresponding prior-year period. Excluding the effect of foreign currency fluctuations, total sales increased by 2.5% for the thirteen weeks ended August 3, 2024, and were essentially unchanged for the twenty-six weeks ended August 3, 2024.
Comparable sales for the combined channels increased by 2.6% and 0.3% for the thirteen and twenty-six weeks ended August 3, 2024, as compared with the corresponding prior-year periods. The company's sales metrics by sales channel showed that store sales increased by 1.4% for the thirteen weeks ended August 3, 2024, while direct-to-customer sales increased by 4.5% during the same period.
Foot Locker, Inc. also provided non-GAAP financial measures such as sales changes excluding foreign currency fluctuations, adjusted income before income taxes, adjusted net income, and adjusted diluted earnings per share. These non-GAAP measures are presented to assist investors in better understanding the changes in the company's business that are not related to currency movements and to assess its progress in achieving long-term financial objectives.
Today the company's shares have moved -2.5% to a price of $24.23. For more information, read the company's full 10-Q submission here.
