The US sporting goods retailer Foot Locker Inc. again suffered significant losses in sales and earnings in the third quarter of the 2023/24 financial year. The results that the company published on Wednesday were at least not as bad as management and analysts had previously expected.
In the three months to October 28th, group sales amounted to 1.99 billion US dollars (1.81 billion euros). This meant it was 8.6 percent (-10.0 percent adjusted for currency effects) below the level of the same quarter of the previous year. Like-for-like retail sales fell by 8.0 percent.
In addition to the decline in sales, higher discounts contributed to the operating profit, which had been $160 million in the same period last year, slipping to $47 million. Net income attributable to shareholders fell by 70.8 percent to $28 million (25 million euros).
License partner introduced: Foot Locker expands to India in 2024
In view of the current development, management only expects a decline in sales of 2.0 to 4.0 percent for the current fourth quarter. The forecast for the entire financial year, which had previously been -8.0 to -9.0 percent, has been clarified to -8.0 to -8.5 percent.
In addition to the current figures, the retailer, which recently announced a partnership with the North American professional basketball league NBA, presented another growth project: the company is planning to enter the Indian market next year. Long-term licensing agreements have already been concluded with the local retail group Metro Brands Limited (MBL) and the e-commerce specialist Nykaa Fashion, explained Foot Locker. MBL thus received exclusive rights to operate Foot Locker stores in India, while Nykaa will manage the retail chain’s online store there.