Earnings for Foot Locker, Birkenstock and More
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Today is a big earnings day for the footwear industry. We're taking a look at Birkenstock, Foot Locker and Caleres.
Here's what you need to know.
Foot Locker Reaffirms 2024 Guidance as CEO Mary Dillon Touts Turnaround Plan Progress
Foot Locker Inc. says its turnaround plan is right on track.
The company on Thursday reaffirmed its outlook for the full year of 2024 after it reported results for the first quarter that included better-than-expected earnings per share.
“We feel good about our progress,” Foot Locker president and chief executive officer Mary Dillon told FN in an interview. “We’re committed to furthering the Lace Up plan and we’re on track to deliver sustainable, profitable growth as we lay the foundation for our next 50 years of growth.”
Throughout Q1, Dillon said Foot Locker made notable improvements in line with its strategic goals. In April, the chain revealed its new “store of the future” retail concept that will serve as a blueprint for future store renovations and expansions. (Foot Locker said it will open four more of these locations this year).
Winning with women: Foot Locker said it is winning over more female consumers, especially in the basketball category.
Birkenstock Raises Guidance, Cites Strong Consumer Demand in Q2
Birkenstock raised its outlook for the year after it reported record revenues for the second quarter of 2024. The results were driven by strong consumer demand across all regions, channels and categories.
On Thursday, the 250-year-old German footwear brand reported that net revenues rose 22 percent to 481 million euros in the second quarter. Birkenstock said it saw double-digit growth across all regions, including 21 percent growth in the Americas, 21 percent in Europe and 42 percent in Asia Pacific, Middle East and Africa (APMA). Direct-to-consumer revenue in the quarter increased 32 percent while wholesale revenue grew 20 percent in the period, propelled by high sell-through rates.
Birkenstock chief executive officer?Oliver Reichert?said in a statement that the company’s results demonstrate strong demand for the company’s products as well as the strength of its business model. He noted that revenues for the label’s five core silhouettes grew more than 20 percent, which he said was “proof of our limited exposure to fashion cycles and the longevity of our brand’s relevance.”
Caleres Reports Mixed Q1 Results, Says Famous Footwear Market Share in Kids’ Shoes Up ‘Significantly’
Caleres delivered mixed first-quarter earnings on Thursday as the company continued to show momentum in its brand division and captured more market share in the kids’ segment at Famous Footwear.
According to the St. Louis-based footwear company, net sales in the first quarter of 2024 were $659.2 million, down 0.5 percent from the same time last year. Net earnings in the period were $30.9 million, with earnings per diluted share of 88 cents, compared to net earnings of $34.7 million, or earnings per diluted share of 97 cents in the first quarter 2023.
Jay Schmidt, president and chief executive officer of Caleres, said in a statement on Thursday that the company started of the year “in strong fashion,” achieving earnings per share ahead of expectations, generating record first quarter consolidated gross margin, and making significant progress on key strategic initiatives, all while investing for the long-term.
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