Foot Locker Inc recently made two major announcements that have earned it a great surge in terms of its stock prices.
The share prices for the footwear retailer have risen significantly after sharing its earnings for Q2 2022 and revealing Richard Johnson’s stepping down as the company’s CEO.
Foot Locker’s Promising Earnings
On Thursday, the executives at Foot Locker officially posted their earnings for the second quarter of 2022.
For the second quarter, Foot Locker reported stronger than expected earnings. The footwear company revealed that or the second quarter, it had generated net income worth 99 cents per share.
According to the report, Foot Locker’s recorded net income is worth $94 million. The total sales for Foot Locker have experienced a 9.2% drop. Following the drop, the loss for the footwear company has risen to $2.07 billion.
The revenue posted by the athletic footwear and sportswear company is worth $2.07 billion for the second quarter of 2022. In the same quarter of the year 2021, Foot Locker’s revenue was worth $2.28 billion.
Foot Locker has reportedly generated 0.62% more revenue compared to the analysts’ estimations of $2.05 billion.
For the second quarter, the footwear company’s earnings were $1.10 per share. However, the analysts had estimated that the earnings for the company would be $0.75 per share.
The company has also reported a decline in its sales. The sales for the footwear company have dipped 10.3% compared to the past quarter of 2021.
Second Major Announcement
Apart from the earnings, Foot Locker has announced that Richard Johnson, the current chief executive officer will be stepping down from his post.
The company has announced that they have appointed a new person as their company’s CEO.
The executives have revealed that Mary Dillon, the former head of Ulta Beauty will be replacing Richard Johnson as the new CEO of the company.
The executives have confirmed that despite retiring from his post as the CEO, Richard Johnson would remain as the board’s executive chairman until January 31 of 2023.
Remarks by Footwear Executives
According to the executives at Foot Locker, Dillon would prove to be a very fine CEO of the company. At Ulta Beauty, she has been fully focused on the expansion of the company.
Out of all the segments, it is the e-commerce business, she has worked tremendously to push higher.
Prior to working for Ulta Beauty, Dillon had worked as McDonald’s global chief marketing officer. At McDonald’s Dillon worked from 2005 to 2010.
With Dillon on their team, they expect that their business will grow tremendously and they are expecting a strong rise in their sales significantly.
Following the announcement, the share prices for Foot Locker have risen 19%.