The US retail group Foot Locker Inc. had to accept declines in sales and earnings in the third quarter of the 2022/23 financial year, but was able to exceed market expectations. This emerges from an interim report that the company published on Friday. In light of the surprisingly solid numbers, management raised its full-year guidance.
In the most recent quarter, which ended October 29, revenue was $2.17 billion. It was only 0.7 percent below the previous year’s level. However, the slight decline was only due to negative currency effects: Adjusted for exchange rate changes, revenues increased by 3.3 percent.
Like many of its competitors, Foot Locker had to cope with higher costs. The operating result fell compared to the same quarter last year by almost 20 percent to 157 million US dollars. Net income attributable to shareholders fell 39 percent to $96 million. Adjusted for special effects, the surplus fell by 33 percent to 121 million, but was above analysts’ expectations.
CEO Mary Dillon praised the retailer’s “solid” results in a “challenging environment” in a statement. The management saw the surprisingly good numbers as a reason to raise its forecast for the year. It now only expects a drop in sales of four to five percent for 2022/23, after previously fearing a drop of six to seven percent. The target corridor for adjusted earnings per share was raised from US$4.25 to US$4.45 to US$4.42 to US$4.50.