(Tiper Stock Exchange) – Foot Lockera US company specializing in the sale of sportswear and footwear, has registered comparable sales down 9.1% in the first quarter of fiscal 2023 (ended April 29, 2023), driven by macroeconomic headwinds, changing supplier mix and Champs Sports brand repositioning. The total sales they decreased by 11.4%, to 1,927 million dollars. Excluding the effect of exchange rate fluctuations, total sales decreased by 10%.
The gross margin decreased 400 basis points from the same period a year earlier, due to a combination of higher discounts versus historically low levels a year earlier and an increase in theft-related shrinkage.
L’Net income was down to $36 million, compared to $133 million in the first quarter of fiscal 2022. TheAdjusted EPS it fell to $0.70, compared to adjusted EPS of $1.60 in the same period a year earlier.
The analysts they expected, on average, earnings per share of $0.81 on revenues of $1.99 billion, according to Refinitiv data.
Foot Locker has made it worse guidance for the full year, now expecting: sales down in the range of 6.5 to 8% (versus a previous estimate of 3.5 to 5.5%), gross margin at 22.4 to 22.6% (vs 30.8-31%) and adjusted EPS between $2-$2.25 (vs $3.35-3.65 excluding $0.15 for the extra week). Analysts had expected indications of EPS of $3.46.