Foot Locker Opens California ‘Power Store’
Bucking the trend away from brick and mortar stores, Foot Locker Inc. opened what it calls a “Power Store” in Compton, California Thursday (Aug. 27).
Footwear News reported the 12,800-square-foot space was designed to provide a “home grown” retail experience. Mindful of the pandemic, the new store provides a curbside pickup window.
“Despite the challenging backdrop of the pandemic and social unrest, we achieved strong second-quarter results led by our digital business, with a return to growth in both the top and bottom line,” Richard Johnson, president and CEO, said in the announcement. “As our global fleet of stores reopened, our customers responded with enthusiasm and energy to our assortments and visited our stores with a high intent to purchase.”
Foot Locker said the store will house footwear, apparel and accessories from Nike, Jordan Brand, Converse, Adidas, Puma and others. It will also offer California brands including Viva La Bonita, Ugly Primo, Mel Depaz and K-Swiss x Mike Reese.
Last week, Foot Locker, Inc. reported second quarter (Q2) comparable-store sales rose 18.6 percent, as the sportswear retailer reported better-than-expected earnings.
Overall, Foot Locker reported non-GAAP net income of $75 million, or 71 cents per share, on sales of $2 billion. The results exceeded analyst expectations of 57 cents.
As a result, Foot Locker said it resumed its quarterly dividend program. The company set a 15 cents per share cash dividend on its stock, which will be payable on to shareholders on Oct. 30.
From April through June, the retailer opened 18 new retail locations, renovated or moved 26 stores and closed 31 locations. At the start of August, Foot Locker operated 3,100 retail locations in 27 countries.
“Looking ahead, we believe the company is well-positioned financially to maneuver through the evolving COVID-19 pandemic,” said Lauren Peters, chief financial officer, in the announcement.
Earlier this month, PYMNTS reported Foot Locker’s good news signaled better times ahead for Nike, whose sales were hammered during lockdowns.
Morningstar Equity Analyst David Swartz told PYMNTS the improved Foot Locker outlook means much the same for Nike. And it’s not isolated — sporting goods retailers including Hibbett Sports are also reporting that Q2 comp-store sales will rise by more than 70 percent.
“Running was a theme among the top-performing brands year-to-date through June,” wrote Matt Powell, NPD Group senior sports industry advisor, in a July 31 blog post.