Football Reserve Store on 34th Street in New York City.
Courtesy: Football locker
Foot storage cabinet It expects another year for the sports shoe industry to be its largest brand partner on Wednesday Nike Continue to reset, Rely on price cuts Cleared through stale stock.
The footwear giant provided a mix of results for the holiday quarter, beating Wall Street’s expectations of revenue but undersells in sales. It expects this trend to reverse over the coming year. For fiscal 2025, Foot Locker expects profits to fall below Wall Street estimates, and its comparable sales guides are better than analysts predict, according to data from LSEG and StreetAccount.
This is based on an LSEG survey of analysts, compared to Wall Street expectations, Foot Locker’s performance in the fourth quarter compared to how it expected.
- Earnings per share: Adjusted 86 cents, estimated at 72 cents
- Revenue: $2.25 billion versus $2.32 billion expected
The company reported net income at the end of three months was $49 million, or 51 cents per share, compared with a loss of $389 million, or $4.13 per share a year ago. Excluding disposable items related to damage expenses, while net losses from termination of operations, Foot Locker reported adjusted earnings per share of $82 million, or 86 cents per share.
Sales fell from $2.38 billion in the same period last year to $2.25 billion, nearly 6%. In the same period last year, football lockers, like other retailers, benefited from an additional week, which leaned towards comparison results.
While foot lockers increase profits by more than 100% Compared to the previous quarter, this trend is not continuing in the current fiscal year due to deep promotions across the sports shoe market. According to LSEG, adjusted earnings per share are expected to be between $1.35 and $1.65, well behind Wall Street’s estimated at $1.77.
Meanwhile, according to StreetAccount, it expects comparable sales to rise between 1% and 2.5%, while the premium sales exceed 1.9% expectations.
“While we expect promotional pressures for consumers and categories remain uncertain until 2025, especially in the first half of the year, our lace program strategy continues to resonate with our customers and brand partners,” CEO Mary Dillon said in a statement. “We return to positive comparable sales growth, expansion of gross margins and positive free cash flow in fiscal 2024, which are proof that our lace UP program is working.”
Foot Locker’s expectations for promotional pressures in the coming year show that it is still having problems with its biggest brand partner, Nike. The sneaker giant is in the turnaround range under its new CEO, Elliott Hill, and said it had previously relied on discounts to clear inventory. When Nike promotes it affects the business of football lockers, because the brand still About 60% of sales.
In December, Hill outlined his strategy to restore Nike’s growth, saying Deep discount Reduced revenue and profits are blamed. The company’s goal is to drive full-price sales on its website, but first said it needs to actively clear old stocks through “lower profitable channels.”
Also, just because Nike sells discounts on its own website does not mean that Foot Locker’s website will run the same promotion. For example, the Nike Air Force 1 ’07 model – the old-style type that Nike is trying to clear away, rather than the new, more innovative sneakers – sold up to 39% off on Nike’s website.
Meanwhile, the same outline (although in different colors) is sold on Foot Locker’s website for $115. This is a problem with lockers because it makes it more likely that customers buy directly from Nike, which is part of the challenge of running a multi-brand company during the direct-to-consumer sales era.
