Foot Locker posts slight uptick in Q1 sales, tops profit estimates

New York-based athletic retailer Foot Locker has reported a 1 percent year-on-year increase in sales in the first quarter of the year.

In the quarter ending April 30, sales came in at 2.175 billion dollars compared to 2.153 billion dollars a year earlier.

But comparable-store sales were down 1.9 percent, with apparel significantly outpacing footwear.

The company’s net income fell to 133 million dollars from 202 million dollars a year earlier, while its gross margin fell by 80 basis points, driven by higher supply chain costs and slightly higher markdowns versus historically-low levels in the previous year.

The company reported an adjusted quarterly profit of 1.60 dollars per share, which was 5 cents above estimates, according to data firm Refinitiv.

“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,” said Richard Johnson, chairman and chief executive officer.

He continued: “Our progress in broadening and enriching our assortment continues, as we continue to meet our customers' demand for choice. These efforts helped drive our strong results in the first quarter, and we believe will allow us to more fully participate in the robust growth of our category going forward.”

Based on its Q1 trading, the company now expects to achieve the upper end of its revenue and earnings guidance for the full year.

It forecasts a FY drop in revenue of between 4 percent and 6 percent, while it expects adjusted earnings per share of between 4.25 dollars and 4.60 dollars.