In its latest earnings report , Foot Locker Inc. announced plans to convert approximately one-third of its Footaction stores into “existing banner concepts” like Foot Locker and Champs Sports. The company is calling the move its way to “better serve its consumers in a post-COVID marketplace.” The majority of the remaining two-thirds of Footaction locations will be closed as their leases expire over the next two years.
According to footaction.com, there are currently 272 stores in the United States and Puerto Rico. Foot Locker purchased the retailer in 2004 from a bankrupt Footstar Inc. for $350 million, and has since operated it alongside previous acquisitions including Eastbay and Champs.
The announcement comes amidst positive news for investors, as the footwear retail giant confirmed a net gain of $200 million in revenue compared to a net loss of $100 million a year prior.
“I am extremely pleased with the strength of our performance in the first quarter, compared not only to last year’s heavily COVID impacted first quarter, but also relative to the first quarter of 2019,” said Richard Johnson, Chairman and Chief Executive Officer. “Against the ongoing challenges of pandemic-related store closures in Europe and Canada and U.S. ports congestion, our top and bottom-line results were nothing short of exemplary. Our merchandise offering resonated very well with our customers, driving strength in our stores and continued momentum in our digital business. With strong product tailwinds, we remain optimistic about our category and our ability to drive long-term growth, profitability and shareholder value.”
Article written by Victor Deng #SoleCollector