In its second-largest acquisition, Amazon buys the company for $970 million.
Online growth accounts for 43% of total sales lift.
It was a good quarter for sales and net income at Foot Locker Inc., led by e-commerce.
For the first quarter ended May 4, Foot Locker, No. 51 in Internet Retailer’s 2013 Top 500 Guide, reported:
- Online sales of $167 million, up by about 18.4% from $141 million in the first quarter of 2012.
- Total sales increased 3.8%, to $1.64 billion from $1.58 billion.
- Comparable-store sales were up by 5.2%.
- Net income of $138 million, up by 7.8% from net income of $128 million in the first quarter of 2012.
The web accounted for 43.3% of total sales growth and 10.2% of overall sales. E-commerce represented 8.9% of total sales in the same period last year.
Among the shoe merchant’s e-commerce sites, sales at Eastbay.com, which sells outdoor apparel, shoes and gear, increased in the “low double digits,” Lauren Peters, chief financial officer, told analysts on the company’s quarterly earnings call, according to a transcript of the call from Seeking Alpha. “Our ‘store banner.com’ businesses continued their very strong performance with sales up almost 50%, while CCS.com was down high single digits,” Peters said. The banner store web sites include FootLocker.com, LadyFootLocker.com, FootAction.com and ChampsSports.com. CCS.com carries skate and snowboard apparel and gear. In March, Foot Locker closed 22 CCS stores, making CCS.com a web-only operation.
Foot Locker continues to expand its online offerings by extending access to inventory online, in-store or via mobile devices, CEO Kenneth Hicks told analysts. This year, he said, “our web sites will show a product as long as it exists anywhere in our company, in a warehouse or in a store. Customers can then buy online and, if they choose, reserve in-store.”
Store customers and sales associates will be able to check on the availability of an item, wherever it may be, Hicks said, “and we'll be able to ship it to their home or to the store of their choice.”
During the first quarter, Foot Locker opened 25 new stores, remodeled or relocated 64 and closed 39. As of May 4, the company operated 3,321 stores in 23 countries in North America, Europe, Australia and New Zealand. An additional 45 franchised stores were operating in the Middle East and South Korea.