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Foot Locker Inc. said on Wednesday that it delivered fourth quarter results above its previously revised expectations, as the company noted that investments and execution drove positive comparable sales and “meaningful” gross margin improvement compared to the prior year.
According to the sneaker retailer, total sales in the fourth quarter of 2024 were $2.24 billion, down 5.8 percent from $2.38 billion the same time in 2023. The company said results from 2023 included the effect of the 53rd week, which represented sales of $98 million. Excluding the effect of foreign exchange rate fluctuations, total sales for the fourth quarter decreased by 4.6 percent, the company noted.
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Net income from continuing operations was $55 million, as compared with net loss of $389 million in the prior-year period, while Q4 earnings per share from continuing operations was 57 cents, as compared with loss of $4.13 per share in the fourth quarter of 2023.
For the full fiscal year of 2024, Foot Locker said total revenue was $7.99 billion, down from $8.17 billion in fiscal 2023. Net income from continuing operations in the year was 18 million, up from a $330 million loss last year.
“Reflecting on 2024 overall, we made significant progress in elevating our in-store experience with our new reimagined doors and store refresh program, enhancing our digital and mobile capabilities, expanding engagement with our FLX Rewards Program, and leaning into brand building through compelling campaigns and partnerships,” Mary Dillon, president and chief executive officer of Foot Locker, said in a statement.
The CEO went on to credit the company’s return to positive comparable sales growth, gross margin expansion, and positive free cash flow in fiscal 2024 to the retailer’s progress within its Lace Up plan, a strategy announced in 2023 to diversify brand portfolio mix, relaunch the Foot Locker brand with new store formats focused on an off-mall presence, maximize the loyalty program and invest in technology to enhance the customer journey.
Foot Locker also continued updating its store fleet in line with its broader retail enhancement plan. In the fourth quarter, Foot Locker remodeled or relocated 21 stores, refreshed 160 stores, closed 47 stores and opened 7 new stores. As of Feb. 1, the company operated 2,410 stores in 26 countries in North America, Europe, Asia, Australia and New Zealand. In addition, 224 licensed stores were operating in the Middle East, Europe and Asia.