Wed, Jun 12, 8:15 PM (87 days ago)
Foot Locker, Inc.'s Q1 2024 financial report reveals a mixed performance. Total revenue for the quarter was $1,879 million, a 2.8% decrease compared to Q1 2023. This decline was primarily driven by a 3.7% drop in store sales, partially offset by a 1.9% increase in direct-to-customer sales. The gross margin rate decreased by 120 basis points to 28.8%, reflecting higher promotional activity and a decline in merchandise margin rate. SG&A expenses increased by $30 million to $461 million, driven by investments in technology and brand-building amid higher inflation. Operating income dropped significantly to $18 million from $61 million in Q1 2023, while net income fell to $8 million from $36 million. The diluted earnings per share also decreased to $0.09 from $0.38. The company reported $58 million in net cash provided by operating activities, a significant improvement from the $118 million used in the same period last year, primarily due to changes in working capital. Foot Locker's liquidity remains robust with $282 million in cash and cash equivalents. The company plans to spend $345 million on capital expenditures and software-as-a-service implementations in 2024. Despite the challenges, Foot Locker continues to invest in its omni-channel capabilities and store refresh initiatives.