Foot Locker battles through supply chain disruption to 4% sales rise

By

Robin Driver

Published
Nov 20, 2021

New York-based sports and footwear retailer Foot Locker, Inc. has reported net sales of $2.19 billion for the third quarter ended October 30, 2021, a result that reflects growth of 3.9% compared to $2.11 billion in the prior-year period, achieved despite supply chain issues.

 
In constant currencies, sales rose 3.6% in the period, while comparable-store sales rose 2.2%. Compared to the third quarter of 2019, before Foot Locker felt the impact of the Covid-19 crisis, Q3 2021 sales rose 13.3% from $1.93 billion.
 
Net income in the company’s latest third quarter totaled $158 million, or $1.52 per share, compared to income of $265 million, or $2.52 per share, in the prior-year period. In Q3 2019, Foot Locker’s income was $125 million, or $1.16 per share.

“The third quarter was another period of strong performance for our Company that reflects the powerful connectivity we have built with our customers," said Footlocker chairman and CEO Richard Johnson in a release. “These impressive top and bottom-line results were against a robust back-to-school season from last year and in spite of the ongoing supply chain challenges.”
 
Johnson also highlighted that, over the course of the third quarter, the company completed its acquisitions of WSS and Atmos, which join the Foot Locker, Kids Foot Locker, Champs Sports, Eastbay, Footaction and Sidestep brands in the group’s portfolio.
 
Year to date, the company’s sales were $6.62 billion, up 23.5% from $5.36 billion in the first nine-months of 2020, and 14.4% from $5.78 billion in the same period in 2019. In constant currencies, year-over-year growth was 21.7%, while comparable-store sales increased 21.3%.
 
Net income for the nine-month period totaled $790 million, or $7.54 per share, compared with $200 million, or $1.91 per share, in 2020, and $357 million, or $3.23 per share, in the same period two years ago.
 
Looking forward, Foot Locker EVP and CFO Andrew Page suggested that the company is well-placed to deal with the challenges posed by ongoing disruptions.  
 
“We expect global supply chain constraints to persist throughout the fourth quarter,” he explained. “That said, we believe we are positioned for the holiday season, with positive momentum and inventory levels ready to meet customer demand.”
 
As of October 30, 2021, Foot Locker operated 2,956 stores in 27 countries spread over North America, Europe, Asia, Australia and New Zealand. The company also has 136 franchise locations to its name in the Middle East.