Foot Locker’s Q2 Profits Fall, New CEO and President Announced

Foot Locker’s Q2 Profits Fall, New CEO and President Announced

Foot Locker reported a drop in profit and sales in the second quarter compared to record results a year earlier as it announced key changes to its leadership team.

In the three months to July 30, net income fell sharply to $94 million from $430 million a year earlier.

Meanwhile, net sales came in at $2.07 billion, down 9.2 percent from a year earlier but up 16.4 percent from pre-Covid 2019 levels.

Second-quarter comparable-store sales fell 10.3 percent year over year.

Foot Locker CFO Andrew Page said the company remains “confident” in its ability to deliver earnings within its original guidance range, but added that the second half “will likely see more pressure than we originally anticipated.” , so you now expect results on the low end.

The company forecasts full-year sales to fall 6 percent to 7 percent, down from a previous estimate of a 4 percent to 6 percent drop.

The company now expects full-year non-GAAP earnings per share of $4.25 to $4.45, down from a previous estimate of $4.25 to $4.6.

“Despite an increasingly challenging macroeconomic backdrop, we delivered a strong quarter in the face of last year’s favorable fiscal stimulus and promotional environment,” Chairman and CEO Richard Johnson said in a statement.

leadership changes

In a separate announcement on Friday, Foot Locker revealed that Johnson would be leaving the company and his joint role as CEO and chairman would be split in two.

Mary N. Dillon, former President and CEO of Ulta Beauty, will replace Johnson as CEO effective September 1.

Foot Locker’s lead independent director, Dona Young, will become non-executive chairwoman effective February 1.

“It has been a privilege and an honor to lead Foot Locker and work alongside the best retail team for nearly 30 years,” Johnson said in a statement.

He continued: “Together, we have built a broad house of brands and banners driven by a shared passion for the global sneaker community. We have turned a physical company into an interactive retail community poised for long-term growth in the digital age.”

Incoming CEO Dillon commented, “I am delighted to be joining Foot Locker, an iconic company with a strong set of values ​​and a focus on the customer experience, as well as tremendous opportunities for growth.

“It’s clear how Foot Locker is at the heart of the global sneaker and sports community, and I’m excited to be part of the company team.”

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