Foot Locker Q2 2023 Results Are In
have a higher than expected decrease in sales for their second quarter, with an overall 9.9 per cent decrease compared to the same period last year. The total sales for Q2 2023 came to $1,861 million, whereas the total sales for Q2 2022 were $2,065 million.
Mary Dillon, President and CEO of Foot Locker, has attributed the decrease to a ‘still-tough consumer backdrop’, with the report going on to say the decrease in sales is driven by ‘ongoing consumer softness’. A soft market is when there are more sellers or goods than buyers in the current market and/or that buyers are exiting the market; however, this is at odds with the increases in sales reported by , and .
During the second quarter, Foot Locker reported closing 108 stores, while they opened 15 new stores and remodelled or relocated 16. This leaves the company with a remaining 2,599 stores across 26 countries in North America, Europe, Asia, Australia and New Zealand. An additional loss was in their dividends, as the company have paused their quarterly cash dividend after their pre-approved payout for Q3. They state this is to ‘increase balance sheet flexibility in support of longer-term strategic priorities’.
As a result of this higher than expected decrease, the company have updated their full-year 2023 outlook, which includes re-evaluating the expected decrease from 6.5–8.0 per cent to 8.0–9.0 per cent. Despite these expected decreases, Dillon states in the report, ‘We remain committed to our Lace Up plan as introduced at our March 2023 Investor Day, and we are encouraged by the progress we are making against our strategic priorities heading towards the holiday season.’