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Foot Locker (FL, $38.39) shares are soaring after the company reported better-than-expected earnings results for Q2, with net income of $94 million, or 99 cents per share. Total sales dropped by 9.2% to $2.07 billion. The company cut its fiscal 2022 outlook and now expects total sales to fall between 6% and 7% for the year.
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Foot Locker also announced on Friday that Dick Johnson will retire from his role as CEO, effective September 1st. Former executive chair and CEO of Ulta Beauty Mary Dillon has been named to the company’s top role.
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The management change comes at a time when Foot Locker is focused on growing sales of Adidas's sneakers and other items at its stores to counter the shrinking presence of its biggest supplier Nike (NKE, $113.16) at the retail chain.
Why it matters
Despite a general slowdown in consumer spending, Foot Locker said it expects to benefit from the back-to-school shopping season. It has also looked to counteract the dwindling presence of Nike by upping its product assortment including fast-growing brands such as Hoka, On, Brooks and Asics. Foot Locker is also appealing to more consumers by leaning into its apparel business.
