.August 28, 2024 04:13:00 PM

Foot Locker (NYSE:FL) reported a smaller-than-expected loss for Q2 2024, with sales slightly exceeding expectations, but shares dropped over 16% intra-day. The company posted an adjusted loss of $0.05 per share, beating analyst forecasts of a $0.08 loss. Revenue rose 1.9% YoY to $1.9 billion, just above the $1.89 billion estimate. Comparable sales increased by 2.6%, driven by a 5.2% growth in global Foot Locker and Kids Foot Locker stores. Gross margin improved by 50 basis points YoY, ranging between 29.5% and 29.7%.

Foot Locker’s President and CEO, Mary Dillon, credited the success of the “Lace Up Plan” for the positive sales growth and margin expansion in Q2. The company reaffirmed its full-year 2024 adjusted earnings guidance, expecting an EPS of $1.50 to $1.70, including a $0.09 impact from a non-recurring charge related to the FLX Rewards Program. Foot Locker anticipates a 1% to 3% comparable sales growth for the year.

In addition to financial results, Foot Locker announced plans to streamline global operations by closing stores in South Korea, Denmark, Norway, and Sweden. The company will relocate its global headquarters to St. Petersburg, Florida, by late 2025 as part of its strategic realignment.