Foot Locker steps up its online sales in Q1
May 27, 2015 07:00 AM
Athletic apparel retailer Foot Locker Inc.’s online sales continued to grow during the first quarter of 2015.
Chief financial officer Lauren Peters told analysts on the retail chain’s Q1 2015 earnings call that domestic online sales grew nearly 50% year over year companywide. Foot Locker, No. 54 in the Internet Retailer 2015 Top 500 Guide, does not break out online sales in its earnings report. Direct-to-consumer sales, which includes e-commerce, make up 12.3% of Foot Locker’s overall sales, which would put direct sales at $235.7 million for the quarter.
“Clearly, our investments in digital capabilities have been effective as have our initiatives to create a customer experience that seamlessly incorporates all the ways they engage with us: desktop, mobile or in store,” Peters told analysts, according to a transcript of the earnings call obtained from Seeking Alpha.
Top500Guide.com data shows that Foot Locker’s online sales have grown 129% over the past five years, from $375 million in 2010 to an Internet Retailer-estimated $859.9 million in 2014, a 5-year compound growth rate of 23.1%. CEO Richard Johnson told analysts he doesn’t see that growth slowing down anytime soon.
“Our buy online, ship from store capabilities are becoming an increasingly important incremental driver of sales and margin for our business,” he said.
For the first quarter of fiscal 2015 ending May 2, Foot Locker reported:
- Overall sales of $1.916 billion during the quarter, up 2.6% year over year from $1.868 billion during the same period last year.
- Direct-to-consumer sales up 18.5% from the year-ago period.
- Net income of $184 million, up 13.6% from $162 million during the same period last year.