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Foot Locker Inc. raised its full-year forecast, citing strong results over Thanksgiving week and progress on its strategic growth plan.
The athletic retailer now expects a full-year comparable sales decline of 8.5 percent to 9 percent, compared with a previous forecast for a decrease of as much as 10 percent. Comparable-store sales, a key retail metric, fell 8 percent for the quarter ended Oct. 28. That was better than Wall Street anticipated.
Chief executive Mary Dillon said it’s a “reset year” for Foot Locker, which has spent much of 2023 using aggressive promotions to keep excess products from piling up. Management expects inventory levels to be flat or down slightly to end the year.
Dillon said in a statement that there’s still a “backdrop of ongoing consumer uncertainty” as retailers charge into the crucial holiday shopping season.
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Foot Locker, which now operates more than 2,600 stores globally, is looking abroad for growth as well through new licensing partners. The company said it will enter India in 2024 through long-term agreements with local retailers Metro Brands Limited and Nykaa Fashion.
The retailer also announced a partnership with the National Basketball Association. Foot Locker will serve as a marketing partner in the US, building on a relationship that goes back to 1999.
Shares rose 9 percent in premarket trading on Wednesday. The stock had been down 37 percent this year through Tuesday’s close.
By Kim Bhasin
Learn more:
Foot Locker Plummets, Drags Down Peers, on Forecast Cut
The athletic-wear retailer also missed expectations for quarterly sales, said it would pause its dividend payouts and flagged softer demand in July, which is typically when back-to-school shopping starts.
