No items found.

Foot Locker Strikes Balance Between Stores, Digital


With its network of stores open for approximately 70 percent of potential operating days in the second quarter versus 50 percent in the first quarter, Foot Locker delivered an 18.6 percent increase in comparable store sales for the period ended Aug. 1 as Direct-to-Consumer sales rose a whopping 173 percent. Total revenues rose 17.1 percent as quarter-end inventory was down 3.7 percent on a constant-currency basis. Quarterly results included pre-tax charges of $90 million to wind down its Runners Point banner in Europe and the restructuring of Eastbay, plus $80 million related to recent social unrest.

“As stores reopened throughout the quarter, product heat combined with pent-up demand from our customers fueled our in-store sales, and impressively, the momentum across our digital channels also continued to build,” Chairman and CEO Dick Johnson told analysts Friday.

With its four North American banners (Foot Locker, Footaction, Champs Sports and Kids Foot Locker) posting “strong, double-digit” increases in sales, Foot Locker reported mid-single digit improvement in average selling prices (ASPs) and a double-digit jump in units sold. Men’s basketball sales rose double digits and men’s running was up by a mid-single digit. During the second quarter, Foot Locker launched a new shoe release reservation system in U.S. to create a “more fluid and customer-friendly experience during high heat product releases.”

Second half programs have been established with New Balance, Puma and Converse to supplement ongoing initiatives with Remix from Nike and the Behind This Race project from Adidas, confirmed Andy Gray, recently promoted to EVP/Chief Commercial Officer for Foot Locker.

“What we proved in the second quarter is that we can amp up our direct business, our digital business, and service the consumers as well,” Johnson commented. “It will continue to be a balance between taking good care of our consumers as they come to the stores. I don’t know that Black Friday will look like Black Friday has looked in the past, I don’t know that the Saturday before Christmas will look like the Saturday of the past.”