Foot Locker reported a decline in profit and revenue in the second quarter of fiscal 2022/23. The US retail group is also saying goodbye to its managing director Richard Johnson.
In the first three months, profit fell to $94 million from $430 million in the same period last year. Revenue was $2.07 billion, down 9.2 percent from the second quarter last year. However, sales were 16.4 percent higher than in this period in the pre-crisis year of 2019.
“Despite an increasingly challenging macroeconomic environment, we delivered a solid quarter based on last year’s favorable fiscal stimulus and advertising environment,” said Johnson.
For the full year, the company expects sales to fall between 6 and 7 percent, compared to a previous forecast of a decline of between 4 and 6 percent.
New boss for Foot Locker
Richard Johnson, President and Chief Executive Officer of Foot Locker, is retiring effective September 1st. The successor has already been determined. Mary Dillon will be the new boss of the US retailer, Foot Locker announced on Friday. Johnson will remain active as CEO until the end of January and then step down from the board. He will remain with the company in an advisory role until April to ensure a smooth transition.
The Board has also decided to separate the Chair from the CEO role and, effective September 1, is appointing Dona Young, the Company’s senior independent director, as Non-Executive Chair.
“We are confident that Mary is the ideal person to lead the company as Foot Locker’s next CEO,” said Johnson. “Mary has a remarkable track record in the retail industry, and she brings an incredible mix of talent, experience and dedication to taking Foot Locker to the next level.”
Dillon brings more than 35 years of experience leading consumer-facing businesses. Most recently, she was Executive Chair at the US beauty company Ultra Beauty, before that she was Managing Director of the company. She has also worked for companies such as McDonald’s and PepsiCo.
Johnson is leaving Foot Locker after 30 years
Johnson worked for Foot Locker for three decades. He has held the position of CEO since 2014. Prior to that, he served as Chief Operating Officer and held various other management positions within the company.
“It has been a privilege and honor to lead Foot Locker and work with the best team in retail in nearly 30 years,” said Johnson global sneaker community. We’ve transformed a brick-and-mortar business into an interactive retail community, poised for long-term growth in the digital age.”