Foot Locker reportedly had a great Q1 when it comes to earnings. However, that means the athletic sneakers and apparel retailer will be closing its Footaction stores.
Yahoo! News reports that Foot Locker blasted by earnings estimates and posted revenues of $2.15 billion, which clocks in at an 82% year-over-year increase.
“Last quarter, I talked about entering our fiscal 2021 with momentum, and that was certainly the case in our first quarter. The momentum gained strength as the quarter progressed, enabling us to deliver exceptional top-line and bottom-line results, even against the ongoing challenges of store closures in Europe and Canada and congestion at the U.S. ports leading to abnormally lean inventory levels,” said Foot Locker Chairman and CEO Dick Johnson on Foot Locker’s earnings call.
Surely a pandemic didn’t stop people from copping their kicks and gear. According to Johnson, Foot Locker’s footwear business increased by over 70%.
However, despite that success, Johnson also revealed that Footlocker would be shuttering its Footaction stores, choosing not to renew its leases over the next two years. About 33% of those Footaction stores will be converted into Foot Lockers, as well as Champs which along with Eastbay is also in the brand’s portfolio of businesses.
“We are currently in the process of assessing the Footaction fleet to determine the best decision for each location,” said Johnson. “Approximately one third of the top performance Footaction locations will be made into new Foot Locker stores establishing a bolder women’s and kids presence, as well as new Champ Sports and Kids Foot Locker stores. We are excited about the opportunities to expand our women’s and kids presence within our Foot Locker and Champs Sports stores.”
While Foot Locker focused on athletic apparel and shoes, Footaction stores leaned more into lifestyle attire as well. But it seems like the rate of L’s handed out on hyped sneakers on release day were about the same, though. Just saying.
Foot Locker To Close Footaction Stores After Great Q1 was originally published on hiphopwired.com