August 26, 2013, 2:39 PM

Foot Locker kicks up Q2 web sales by 20%

Total sales rose a relatively modest 6.4%.

Paul Demery

Managing Editor, B2B E-commerce

Lead Photo

Web sales at sportswear retailer Foot Locker Inc. increased about three times faster than did store sales in its fiscal second quarter ended Aug. 3, the company said Friday.

“Our direct-to-customer business continued its strong performance, with a sales gain of approximately 20%,” Lauren Peters, chief financial officer and executive vice president, said in an earnings conference call with stock analysts. Total sales rose a relatively modest 6.4%, she added.

Although Peters didn’t disclose exact direct-to-consumer sales, a 20% gain amounts to Q2 web sales of about $142.8 million, up from the $119.0 million in direct-to-customer sales in the same period a year ago. The retailer typically issues more comprehensive financial figures that break out e-commerce sales in its full 10Q quarterly filings; its Q2 10Q filing is due out early next month. Foot Locker classifies e-commerce and phone sales generated by its web sites and paper catalogs as direct-to-customer sales, though nearly all are e-commerce transactions, vice president and treasurer John Maurer says.

Peters added that the overall increase in direct-to-customer sales included a gain of more than 40% within the retailer’s “store-banner dot-com business,” which includes the e-commerce sites for its store brands Foot Locker, Lady Foot Locker, Kids Foot Locker, Footaction and Champs Sports. She didn’t specify the actual growth rates for each of those sites.

The company’s other sportswear retail sites include CCS.com and Eastbay.com. Peters said year-over-year sales at Eastbay.com had a “high single-digit gain,” but didn’t comment on sales at CCS.

Foot Locker also said it plans to launch next month the first e-commerce site for its SIX:-02 women’s sportswear brand. It’s also expanding its number of SIX:02 stores, to seven from three in time for this year’s holiday shopping season, executives said during the conference call.

Also for the three months ended Aug. 3:

● E-commerce sales of about $142.8 million were 9.8% of total sales of $1.45 billion;

● Comparable-store sales rose 1.8%, with comp-store sales gains of “mid-single digits” in Europe and Asia-Pacific helping to offset “single-digit” comp-store losses in the United States and Canada.

● Net income increased 11.9% to $66 million from $59 million.

Foot Locker didn’t mention e-commerce growth rates for the six months ended Aug. 3, but noted:

● Total sales rose 5.0% year over year to $3.092 billion from $2.945 billion.

● Net income rose 9.1% year over year to $204 million from $187 million.

As of Aug. 3, the company operated 3,495 stores, including 194 that it acquired during the quarter from Germany-based Runners Point Group, which operates store and e-commerce operations under the Runners Point and Sidestep brands.

Maurer adds that Foot Locker expects the “Runners Point’s online team to help us jump-start our growth” in Europe, where Foot Locker’s other retail brands are already growing rapidly on the web but off a smaller base of sales. Foot Locker hasn’t publicized its volume of Europe-only online sales, but its European sales are estimated at 91.3 million euros (US$119.67 million) for 2012 in Internet Retailer’s 2013 edition of the Europe 500. Foot Locker says that, not counting Runners Point Group,  it operates some 600 stores in Europe and had total 2012 revenue there of more than $1 billion (about 748 million euros).

Runners Point operates more than 200 stores in
Europe and had 197 million euros (US$254 million) in total 2012 sales, according to Foot Locker.

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