Foot Locker’s net income plunges 77.8 per cent

(Source: Bigstock)

Foot Locker‘s net income has plunged amid lower sales in the fiscal first quarter.

The sportswear and footwear retailer’s net income plummeted 77.8 per cent to $8 million as group revenue fell 2.7 per cent to $1.88 billion.

Sales dipped 2.8 per cent to $1.87 billion while licensing revenue rose 25 per cent to $5 million. The group’s comparable sales slid 1.8 per cent.

“Through our Lace Up Plan, we are strengthening our brand partnerships, enhancing customer engagement through digital and loyalty investments, and solidifying our position at the intersection of basketball and sneaker culture,” said Mary Dillon, president and CEO at Foot Locker.

“The upcoming launch of our reimagined FLX Rewards program in the US in the second quarter will further strengthen our demand flywheel as we evolve into a modern, omnichannel retailer.”

The company reaffirmed its forecast 1 per cent decline to 1 per cent growth forecast for sales and 29.8 per cent to 30 per cent for gross margin.

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