Foot Locker (NYSE:) reported a narrower-than-expected loss for the second quarter of 2024, with sales slightly beating estimates, but shares fell more than 10% following the results.
The specialty athletic retailer posted an adjusted loss of $0.05 per share for the quarter ended August 3, compared to the consensus estimate of a $0.08 loss. Revenue rose 1.9% YoY to $1.9 billion, edging past the consensus estimate of $1.89 billion.
Comparable sales increased 2.6%, led by global Foot Locker and Kids Foot Locker comparable sales growth of 5.2%. The company’s gross margin expanded by 50 basis points YoY to 29.5-29.7%.
“The Lace Up Plan is working, as evidenced by our return to positive total and comparable sales growth as well as gross margin expansion in the second quarter,” said 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 includes a $0.09 drag from a non-recurring FLX Rewards Program charge. The company expects comparable sales to grow 1% to 3% for the year.
As part of its strategic updates, Foot Locker announced plans to streamline its international operations by closing stores in South Korea, Denmark, Norway, and Sweden. The company also plans to relocate its global headquarters to St. Petersburg, Florida in late 2025.
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