Foot Locker announces exec exit, job cuts, and wind-down of Sidestep in Europe

Foot Locker shared a variety of news Thursday as it became the latest fashion company to announce job cuts.

The New York-based specialty athletic retailer said in a regulatory filing that it would be cutting “a number of corporate and support roles” in order to streamline the business and enhance its operational efficiency.

As a result of the redundancies, the company said it expects to realize cost savings of around 18 million pounds on an annualized basis beginning in fiscal 2023.

In the same filing, the retailer announced it has made the strategic decision to “wind down its Sidestep banner in Europe”, which it said was “consistent with the company’s broader efforts to focus on its core and growth banners”.

Foot Locker acquired fashion and footwear brand Sidestep in 2013 when it bought its parent company Runners Point Group in a deal worth 72 million euros (approximately 94 million dollars at the time).

Additionally, the company announced Thursday that Andrew I. Gray, the executive vice president of Global Lockers and Champs Sports, has left the business.

More changes in Foot Locker’s leadership

Gray’s departure is the latest in a spate of top team changes at Foot Locker in recent months. In November, the retailer announced the departure of chief financial officer Andrew Page, and the appointment of executive vice president and chief operating officer Elliott Rodgers.

In the same announcement, Frank Bracken was appointed as new executive vice president and chief commercial officer; Rosalind Reeves was appointed executive vice president and chief human resources officer; and Robert Higginbotham was appointed senior vice president of investor relations and financial planning and analysis.

Also in November, Foot Locker upped its full-year guidance after reporting a smaller than expected drop in sales and profit in the third quarter of the year.

In the three months to October 29, revenue came in at 2.2 billion dollars, which was down 0.7 percent on a reported basis, but was up 3.3 percent on a constant currency basis.

Meanwhile, net income narrowed to 96 million dollars from 158 million dollars a year earlier.

Accordingly, the company said it expected full-year sales to drop by between 4 percent and 5 percent year-on-year, compared to its previous guidance of between 6 percent and 7 percent.

It also said it expected non-GAAP earnings per share of between 4.42 dollars and 4.5 dollars, up from its previous guidance of between 4.25 dollars and 4.45 dollars.