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Foot Locker Finishes Strong; Outlines Growth Plan

It’s not how you start, it’s where you finish—and where you’re headed.

As that race logic pertains to Foot Locker, which will celebrate its 50th anniversary in 2024, the chain’s Q4 comp sales grew by 4.2 percent, driven by increased traffic and improved access to high-quality inventory, resulting in strength across brands and regions. Meanwhile, total sales—excluding the effect of foreign exchange rate fluctuations—increased by 3.6 percent during the quarter. Looking further out, the company introduced, during its Investors Day, its Lace Up plan featuring a new set of strategic imperatives and financial objectives designed to set up success for the next 50 years, according to Mary Dillon, president and CEO.

“Our team delivered a great finish to the year with strong fourth quarter results that capitalized on resilient holiday demand and a compelling assortment and inventory position from our brand partners,” states Dillon. “We are entering 2023 with a focus on resetting the business—simplifying our operations and investing in our core banners and capabilities to position the company for growth in 2024 and beyond.”

Lace Up will be guided by new strategic imperatives:

  • Expand Sneaker Culture: Serve more sneaker occasions, provide more choice, and drive greater distinction.
  • Power Up the Portfolio: Create more distinction among banners, including re-launching the Foot Locker brand, and transforming the company’s real estate footprint by opening new formats, shifting off-mall, and closing underperforming stores.
  • Deepen Our Relationship with Customers: Reset the company’s loyalty program and elevate the customer relationship through enhanced analytical capabilities.
  • Be Best-in-Class Omni: Improve the customer experience online through the full shopping journey.

In connection with its new strategic direction, Foot Locker has set long-term financial targets for fiscal years 2024 through 2026, including total sales growth of 5-6 percent and comp sales growth of 3-4 percent. As of Jan. 28, 2023, the company operated 2,714 stores in 29 countries in North America, Europe, Asia, Australia, and New Zealand. In addition, 159 franchised stores were operating in the Middle East and Asia.


The June 2024 Issue

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