Foot Locker’s digital sales step closer to the billion mark
November 23, 2015 06:00 AM
Continued online sales growth has Foot Locker Inc. thinking e-commerce could become a billion-dollar contributor to its bottom line in the not-too-distant future.
Chief financial officer Lauren Peters told analysts on the athletic apparel retail chain’s Q3 2015 earnings call that sales in Foot Locker’s direct-to-consumer division, which includes e-commerce, posted a comparable-sales gain of 13.4% year over year and that the segment accounts for 12.4% of overall sales. Based on Internet Retailer calculations, that means direct to consumer accounted for $222.5 million in sales during the quarter, up 6.2% from $209.5 million during the same time last year, when direct-to-consumer sales accounted for 12.1% of the company’s bottom line.
Foot Locker, No. 54 in the Internet Retailer 2015 Top 500 Guide, does not break out online sales. Peters said domestic e-commerce sales grew nearly 30% year over year, though she declined to specify a dollar figure.
Foot Locker CEO Richard Johnson said he sees Europe as being integral to the company’s future online success.
“Foot Locker's online business in Europe is still quite under-penetrated, so as we enhance the digital connections with our customers there, we see tremendous opportunity for even better performance,” he told analysts, according to a transcript from Seeking Alpha. “We have in place our new digital platform in Europe that we're just beginning to take full advantage of and a relatively new website gaining traction in Canada. We have created excellent connections with our core customers online, connections that start well in advance of their developing an intention to buy anything from us.”
For the third quarter ended Oct. 31, Foot Locker reported:
- Net revenue of $1.794 billion, up 3.6% from $1.731 billion during the same time last year.
- Net income of $80 million, down from $120 million last year.
- Comparable-store sales up 8.7% year-over-year.
For the first nine months of 2015, Foot Locker reported:
- Net revenue of $5.405 billion, up 3.1% from $5.240 billion during the same time last year.
- Net income of $383 million, up from $374 million.