Foot Locker (FL) 2Q16 Earnings Call Notes

posted in: Earnings Call, Notes, Retail | 0

Both Average selling price and units up for footwear

Maintaining the trend of recent quarters, both average selling prices and units were up in footwear during the quarter, while in apparel, ASPs were up and units were down reflecting our ongoing shift to more premium apparel assortments. Lauren B. Peters – EVP and CFO


FL is the top sneaker retailer, as evidenced by vendor relation dynamics

We believe we are the leading retailer of premium sneakers; period. Not just a specific category of sneakers; sneakers, full stop… Our vendors know that our banners provide the perfect battleground spread out to win market share… And that’s why the leading brands continue to be highly motivated to collaborate with us on these exclusives and strong allocations. Richard A. Johnson – President and CEO


Women’s sneakers is a long-term opportunity

Finally, the women’s business remains a tremendous long-term opportunity. As I’ve said, we are excited to bring SIX:02 to New York City in a few days, with another key shop opening in our Times Square location towards the end of the year. And if you’re not in New York or near any of our other SIX:02 stores, you can see the exciting progress we are making at Richard A. Johnson – President and CEO


Despite the closing of anchor stores, FL traffic is still up and likely to stay strong according to CEO Richard A. Johnson

Sure. Our U.S. traffic was up in the quarter, Matt, and the closing of anchor stores has been going on for a while. We believe there’s only a couple of places in the mall that people will line up for products. One of them is a Foot Locker family store and one of them is the Apple Store…They interact with us digitally on their way to the mall, they in the mall will take a photo of the sneaker on their foot, and they’ll tweet it out or they will send it out to their group of friends and we get the responses back. So the anchors closing is a change certainly in the makeup of the malls, but our consumer is still driven to the malls as a place for social interaction with their friends. So we are confident that regardless of anchor positioning, we should continue to drive traffic into the malls.

Richard A. Johnson – President and CEO


Fashion is beginning to override performance in sneakers

“the facts are that most of the basketball shoes that we sell never see a basketball court, most of the running shoes that we sell never see the roads or the trails of the track to run in, they just look really good and they are part of the sneaker culture that we really support” Richard A. Johnson