American shoe store chain Foot Locker ‘s first quarter was below expectations. It managed a turnover and profit increase, but both were lower than expected.
More focus on women
Foot Locker’s turnover grew 3.7 % to 1.99 billion dollars (1.77 billion euro) in the first quarter, while profit grew 3.8 % to 191 million dollars (170.1 million euro), while like-for-like turnover grew 2.9 %.
That meant Foot Locker remained below expectations, as analysts had expected a 2 billion dollar turnover and a 4.5 % like-for-like turnover increase.
The company’s weaker results are because of how other brands (like Nike and Adidas) altered their strategy. They regularly launch limited basketball collections, but nowadays prefer to sell these themselves causing Foot Locker to lose part of its turnover. On top of that, several collections were launched at a later date than last year.
To counter the disappointing results in these categories, Foot Locker added more leisure shoes to its product range, while it is also adding more clothing and shoes geared towards women.