Footlocker reveals 35% drop in net income in Q1

Foot locker has released its financial results for the first quarter of 2022, revealing a 35% drop in net income to £105 million, compared with £160 million for the same period last year.

The company reported that its first quarter comparable-store sales decreased by 1.9% for the 13 weeks ending 30 April 2022, with apparel significantly outpacing footwear.

However, total sales increased by 1.0% to £1.73 billion, compared with sales of £1.71 billion in the first quarter of 2021.

Gross margin declined by 80 basis points compared with the prior-year period, driven by higher supply chain costs and slightly higher markdowns versus historically-low levels.

Richard Johnson, Chairman and Chief Executive Officer of Footlocker said: "We are off to a strong start in 2022, reporting a solid quarter against the tough comparisons of fiscal stimulus and historically-low promotions from last year. Our progress in broadening and enriching our assortment continues, as we continue to meet our customers' demand for choice.

"As we elevate brands across our portfolio, continue to use our real estate flexibility to optimize our footprint, and evolve our omni-channel capabilities, we are excited about our improving ability to expand our customer base and fuel our consumer's desire for self-expression."

As of 30 April 30 2022, the Foot locker operated 2,815 stores in 28 countries in North America, Europe, Asia, Australia, and New Zealand. In addition, 148 franchised stores were operating in the Middle East and Asia.