US retailer Foot Locker Inc. missed market expectations in the first quarter of fiscal 2023/24. On Friday, the company presented disappointing results and lowered its full-year guidance.
For the first quarter ended April 29, consolidated revenue was $1.93 billion, down 11.4 percent from the prior-year period. On a like-for-like basis, retail sales fell by 9.1 percent, mainly due to significant losses in North America. The company largely blamed the current “macroeconomic headwinds” for the decline.
The retailer significantly lowers its full-year forecasts
The result also missed the forecasts of the analysts. Not least due to higher discounts and increased costs, net income attributable to shareholders slipped 73 percent to $36 million. Adjusted for special effects, the quarterly surplus shrank by 57 percent to 66 million US dollars (61 million euros).
Given the disappointing first quarter, the company significantly lowered its full-year guidance. It is now expecting a drop in sales of 6.5 to 8 percent, after only a minus of 3.5 to 5.5 percent had previously been expected. The target for adjusted diluted earnings per share was lowered to between $2.00 and $2.25 from $3.35 to $3.65.
Former Kohl’s manager Mike Baughn will be the new chief financial officer
At the same time, the group presented its future chief financial officer. Mike Baughn will serve as executive vice president and chief financial officer effective June 12. Baughn joins from US retailer Kohl’s Corporation, where he has held various senior finance positions over the past 15 years.
At Foot Locker, Baughn succeeds Andrew Page, who left the company in late February. Since then, Robert Higginbotham has been responsible for finance as interim CFO. Higginbotham will return to the position of senior vice president, investor relations and financial planning & analysis following Baughn’s arrival, the retailer said.