US-based speciality athletic retailer Foot Locker has reported a substantial net loss of $389m for the fourth quarter (Q4) of the fiscal year 2023 (FY23), a stark contrast to the net income of $19m recorded in Q4 FY22.
The retailer's diluted loss per share stood at $4.13, compared with earnings per share (EPS) of $0.20 in Q4 FY22.
Total sales for Q4 FY23, including the additional 53rd week, saw a marginal increase of 2.0% to $2.38bn, up from $2.33bn in the fourth quarter of 2022.
But comparable sales dipped by 0.7%, influenced by the repositioning of the Champs Sports banner, consumer softness and a shift in vendor mix.
Combined comparable sales for Foot Locker and Kids Foot Locker in North America rose by 5.2% during the quarter.
At the end of the quarter, Foot Locker had $297m in cash and cash equivalents, while total debt stood at $447m.
For the full fiscal year 2023, the net loss attributable to Foot Locker was $330m, a significant downturn from its net income of $342m in FY22.
The retailer's net loss per share attributable to Foot Locker for FY23 was $3.51, a reversal of its net EPS of $3.58 the previous year.
Foot Locker sales in FY23 were $8.15bn, down from $8.74bn in FY22.
As of 3 February 2024, the company operated 2,523 stores in 26 countries. 202 licensed stores were operating in the Middle East and Asia.
Foot Locker president and CEO Mary Dillon said: "We are pleased to report fourth-quarter results ahead of our expectations, including meaningfully accelerated sales trends relative to the third quarter, earnings per share that exceeded our guidance range and improvements across multiple key performance indicators.
“As we continued to deliver on the strategic imperatives of our lace-up plan, we built significant momentum through the holiday season, driven by full-price selling in addition to compelling promotions. We also proactively re-invested in markdowns to end the year with leaner inventory levels compared to our expectations."
Looking ahead to the full year 2024, Foot Locker anticipates sales ranging between a 1% decline to 1% growth and gross margin between 29.8% and 30.0%.
In November 2023, Foot Locker unveiled “The Heart of Sneakers,” a new global platform coinciding with its star-studded 2023 holiday campaign.
