Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Foot Locker Chairman and CEO Matthew Sera stopped short of saying that his company is pursuing a sale as has been previously rumored, during the company’s second-quarter conference call. But he did say that the athletic footwear and apparel chain has hired investment-banking firm Evercore Partners to assist in exploring strategic alternatives.

Among the goals of this partnership are stabilizing same-stores sales, enhancing the North American portfolio, pursuing global opportunities and looking at acquisitions, Sera says. The new comes as Foot Locker’s same-store sales and earnings dropped for its most recent quarter, which ended July 29.

Same-stores sales decreased 1.3% year over year, and total sales, which came in at just over $1.3 billion, were essentially flat. Foot Locker’s net income was $14 million, down from $44 million during last year’s second quarter, due to a write down on the retailer’s European business.

Stores in Europe fared particularly poorly, particularly as a result of the competitive environment in the UK, executives say, with same-store sales falling 10%. “That is the number one promotional market,” Sera says. Canada and Asia posted a mid-single-digt increase.

In the US, the Foot Locker chains posted flat same-store sales, while the Footaction and Champs Sports chains were up the mid-single digits. In the third quarter, executives are expecting same-store sales to be flat to slightly down.

Foot Locker ended the quarter with just under 3,900 units across its brands, down about 30 stores from the same year-ago period. No chains experience significant openings or closures during the year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.