Foot Locker, Inc. has recently released its 10-Q report, providing a detailed look at the company's financial performance and strategic initiatives. Foot Locker operates as a footwear and apparel retailer in various regions, including North America, Europe, Australia, New Zealand, Asia, and the Middle East. The company's brand portfolio includes Foot Locker, Kids Foot Locker, Champs Sports, WSS, and atmos. It operates physical stores, e-commerce sites, and mobile apps, offering a range of athletic footwear, apparel, and accessories.
The company's 10-Q report discusses its strategic initiatives to improve profitability, including the decision to exit underperforming operations in South Korea, Denmark, Norway, and Sweden by mid-2025. Foot Locker also plans to close all stores in these regions and has entered into agreements to sell its Greece and Romania businesses. Additionally, the company announced its intention to move its global headquarters to St. Petersburg, Florida, by late 2025, with the aim of increasing collaboration among teams and reducing costs. During the third quarter of 2024, Foot Locker recorded impairment and reorganization charges of $13 million in connection with these decisions.
As of November 2, 2024, Foot Locker operated 2,450 stores, down from 2,523 and 2,607 stores at February 3, 2024, and October 28, 2023, respectively. The company also had 214 licensed stores operating in the Middle East and Asia as of November 2, 2024.
In terms of financial performance, for the thirteen weeks ended November 2, 2024, total sales decreased by $28 million, or 1.4%, compared to the corresponding prior-year period. For the thirty-nine weeks ended November 2, 2024, total sales decreased by $46 million, or 0.8%, compared to the corresponding prior-year period. Excluding the effect of foreign currency fluctuations, total sales decreased by 2.2% and 0.7% for the thirteen and thirty-nine weeks ended November 2, 2024, respectively. Comparable sales for the combined channels increased by 2.4% and 1.0% for the same periods.
Foot Locker also presented certain 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, to provide investors with a more direct comparison of its performance across reporting periods.
The company operates in three operating segments: North America, EMEA, and Asia Pacific. Foot Locker's strategic initiatives, store count, and financial performance are key highlights from its latest 10-Q report, providing insights into its operations and future plans. Today the company's shares have moved 1.2% to a price of $21.89. For more information, read the company's full 10-Q submission here.
