Footlocker Raises Forecast, Shares Jump 16 Percent — Retail Bum

Foot Locker has raised its annual forecast on the heels of strong Thanksgiving week sales and continued progress on its growth plan.

The company saw strong online and in-store sales and an increase in the total amount shoppers spent and the number of products they bought. It also saw shoppers willing to pay full price for new, compelling, and trendy products.

“We know we’re vying for wallet share with a value-conscious consumer this holiday season,” said CEO Mary Dillon. “While our customers remain discerning with their discretionary dollars and we expect that will continue to through the season, we’re also seeing them respond to newness at key moments.”

Dillon also pointed to the company’s turnaround efforts, including a new marketing partnership with NBA, which all contributed to a strong start to the 2023 holiday shopping season.

Looking ahead, the company is now anticipating an 8.5% to 9% decline in full-year comparable sales, an improvement over the 10% decline it was experiencing before. Meanwhile, the company’s similar store sales were down 8% for the last quarter that ended October 28, beating analysts’ expectations of a 9.7% drop.

The company’s earnings update sent its shares by 16% on Wednesday.