Footwear Insight - Business Report Quarterly

to ¥95,000 million ($674.5 million) and almost 16% revenue expansion to ¥660,000 million ($4.67 billion). Sales: +27% to $825.3 million in Q1 ended June 30 as Hoka sales rose 29.7% to $545.2 million, UGG sales jumped 14.0% to $223.0 million, and Teva sales fell by 4.3% to $46.3 million. Operating profit: +87.8% to $132.8 million from $70.7 million. Gross margin: +560 basis points to 56.9% Key developments: Dave Powers' reign as president and CEO ended with his Aug. 1 retirement. He was replaced by the company's Chief Commercial Officer Stefano Caroti. FY sales outlook calls for 10% growth to $4.7 billion with a gross margin of approximately 54%. Sales: +7.8% to $3.47 billion for the three months ended Aug. 3, helped by higher average ticket and higher number of transactions year-over- year. Comparable sales rose 4.5% year-over-year. Operating profit: +50.7% to $470.1 million. Gross margin: +233 basis points to 36.73% from 34.4% in year-ago period. Key developments: Raised its FY comparable sales growth guidance to +2.5 to +3.5%. Annual revenues are forecast at $13.1 to $13.2 billion. Says its House of Sport concept is "drawing unprecedented landlord interest." Opened its 15th location in September with five more planned to debut before the end of year. Sales: +1.9% to $1,896 million in Q2 ended Aug. 3. Foot Locker banner delivered 5.9% comparable sales growth while other banners posted declines. Foot Locker North America stores generated 7.6% comparable sales expansion. Operating profit: A loss of $9 million against a profit of $1 million in the year-ago period. Gross margin: +60 basis points to 27.8%. Key developments: Moving corporate HQ to St. Petersburg, FL from New York in 2025. Will end FY with 2% less square footage and 4% fewer doors. New Reimagined format slated to represent 20% of global square footage in 2026, up from 12% in 2023 as off-mall doors account for half of store portfolio. Sales: +7.3% to $2.37 billion for Q2 ended July 28, up 8% on a constant-currency basis. Americas comparable sales declined by 3% or 2% on constant-currency basis. Operating profit: +12.7% to $540.2 million. Gross margin: +80 basis points to 59.6% Key developments: Cut its FY revenue forecast to $10.375 - $10.475 billion, citing a 'more cautious consumer landscape.' But, still focused on its 'Power of Three x 2' strategy that calls for a doubling of 2021 revenues by 2026. Sales: -3.8% to $4.9 billion in Q2 as comparable sales fell by 4.0%. By nameplate, Macy's sales declined by 4.4%, inched down by 0.2% at Bloomingdale's, and rose 1.7% at Bluemercury. Operating profit: +79% to $222 million for the period ended Aug. 3. Gross margin: +240 basis points to 40.5%, helped by 210 basis point increase in merchandise margin and improved delivery expense controls. Key developments: Introducing new market and private brands. Implementing women's shoe staffing tests in about 100 additional stores this fall to gain insights on needed department enhancements. footwearinsight.com Q3 October 7 2024 ~ Footwear Insight Business Report Quarterly 11

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