Foot Locker reveals loss despite sales rise

US footwear brand Foot Locker has reported a net loss of £303 million ($389m) for the fourth quarter ending 3 February 2024, one year after launching its turnaround strategy. 

Total sales increased 2% to £1.85 billion ($2.38bn), in comparison to £1.81 billion ($2.33bn) in the fourth quarter of 2022.

It comes as Foot Locker continues its turnaround strategy, called Lace Up, in an attempt to drive global growth.

This includes a relaunch of the brand and reshaping its real estate footprint, amongst other growth initiatives.

During the fourth quarter, the company opened 29 new stores, remodeled or relocated 66 stores, and closed 113 stores.

Mary Dillon, President and CEO of Footlocker, said: "As we continued to deliver on the strategic imperatives of our Lace Up Plan, we built significant momentum through the holiday season, driven by full-price selling in addition to compelling promotions.

"We also proactively reinvested in markdowns to end the year with leaner inventory levels compared to our expectations.

"As we continue evolving into a modern, omnichannel retailer for 'all things sneakers,' we are making important progress strengthening our brand partnerships, increasing customer engagement, transforming our real estate footprint, and driving growth in digital.

"To further build on our progress, we are leaning into strategic investments in digital, store experience, loyalty, and brand-building in 2024. The Foot Locker brand will celebrate its 50th anniversary later this year, and we are confident that our Lace Up Plan is positioning the company for longer-term sustainable growth, while laying the right foundation for our next 50 years of success."

Looking ahead, Foot Locker expects annual sales to change between -1% and 1%, with its store count down 4% for the full year.