Foot Locker Looks to be Regaining Its Stride

Foot Locker (New York) posted better-than-expected comparable sales for its just-finished fiscal first quarter, as CEO Mary Dillon’s “Lace Up” turnaround plan appears to be boosting the brand’s fortunes, CNBC reports. Dillon, who ran beauty brand Ulta before joining the shoe/apparel retailer in fall 2022, said average selling prices increased during the quarter, proving that consumers are willing to pay full price for the right product.

Specifically, for the quarter, the sneaker giant saw comparable sales decline 1.8% during its fiscal first quarter, far better than the 3.1% drop-off that analysts expected, according to StreetAccount.

“We had a solid start to the year in the first quarter, which demonstrates that our Lace Up Plan is working,” Dillon told CNBC in an interview. “The reason I feel confident — we’re launching an enhanced FLX rewards program, so we have a lot of opportunity with rewards. We’re launching a revamped mobile app, which we know is a great way to drive customer engagement and commerce and we see growth opportunities … with all of our brand partners throughout the year, including returning to growth with Nike in the holiday quarter.”

Another of Dillon’s major initiatives has been to revamp Foot Locker’s stores, where it still does about 80% of its annual sales. She’s directed the construction of new, off-mall locations, closed underperforming stores and refreshed existing locations.

In addition, earlier this year, the retailer unveiled its “store of the future,” completely revamping the old-school Foot Locker format and serving as a model for its store refreshes.

“Instead of a wall of shoes, it’s really a house of brands,” Dillon told CNBC. “And I think it’s coming to life in a way that our brand partners are thrilled with. We’ve heard that from everybody.”

In all, Foot Locker has about 2500 retail stores in 26 countries across North America, Europe, Asia, Australia and New Zealand, and a licensed store presence in the Middle East and Asia.