Foot Locker has reported a drop in net income of $165m (£124.2m) from $180m (£135.5m) for the same period last year for its first quarter to 5 May, which is “above expectations” according to the retailer.
Comparable store sales dipped by 2.8%, with overall first quarter sales rising by 1.2% to $2,025 (£1,523.9), compared to sales of $2,001 to the corresponding period last year.
The footwear company’s gross margin fell from 34% to 32.9% whilst SG&A expense rate climbed to 19% from 18.5% for the period last year.
The results included an incremental $12m (£9m) charge against the company related to pension litigation. Excluding this charge, non-GAAP earnings were $1.45 (£1.09) per share.
Chairman and chief executive Richard Johnson said: “The flow of premium product continues to improve, with increasing breadth and depth in the most sought-after styles from our key vendors.
This led to first quarter results which were above our expectations. With the strength of our strategic vendor partnerships and our central position in youth culture, we continue to believe that we are poised to inflect to positive comparable-store sales growth as we progress through the year.”