While the recovery plan takes effect, the company is implementing further changes aimed at improving the business.

The sneaker retailer announced Wednesday that it will move its global headquarters to St. Petersburg, Florida, in 2025 while maintaining a smaller presence in its current New York City office. Foot Locker also announced the upcoming opening of its Global Technology Services (GTS) hub in Dallas, which will serve as the centerpiece of the retailer’s tech capabilities and innovation.

Details of the measures and the impact on the company’s positions were not immediately disclosed.

Internationally, Foot Locker announced it would close stores and e-commerce operations in South Korea, Denmark, Norway and Sweden, while expanding operations in Greece, Southeastern Europe and Romania through a licensing partner, the Fourlis Group.

“We are constantly evaluating how we can simplify and optimize the business to better focus on our core themes and core markets and improve our profitability,” said Mary Dillon, president and CEO of Foot Locker, in an interview with FN.

For the second quarter, Foot Locker reported revenue growth of 1.9 percent to $1.896 billion, which was in line with expectations of $1.89 billion among analysts surveyed by Yahoo Finance. Net loss was $12 million in the second quarter, compared to a net loss of $5 million in the second quarter of last year. Non-GAAP loss per share was 5 cents, above expectations of analysts who had expected a loss of 7 cents.

Most notably, comparable sales posted positive growth for the first time in six quarters, increasing 2.6 percent, primarily due to a 5.2 percent increase in comparable sales for Foot Locker and Kids Foot Locker.

“We are pleased with our strong second quarter performance and truly believe this is a sign that the Lace Up plan is working,” Dillon said, referring to Foot Locker’s strategic plan announced for 2023, which calls for diversifying the brand portfolio mix, relaunching the Foot Locker brand with new store formats with a focus on a non-mall presence, maximizing the loyalty program and investing in technology to enhance the customer experience.

Just last week, Foot Locker reopened its Manhattan Herald Square store on 34th Street after modernizing the interior and layout in line with Foot Locker’s broader retail improvement plan. During the second quarter, Foot Locker remodeled or relocated 14 stores, refreshed 67 stores, closed 31 stores and opened five new stores.

Foot Locker also saw positive results in the second quarter in the U.S. from the launch of its new and improved loyalty program, FLX Rewards. While the launch resulted in a one-time cost of $11 million, Dillon said the numbers for sign-up rate and engagement among first-time shoppers were positive and that members had higher average order values ​​than non-loyalty members. Loyalty program penetration was highest in July, which was the retailer’s highest-selling month of the quarter thanks to a strong start to the back-to-school season.

In the second quarter, the share of sales from non-Nike brands remained stable at 40 percent, in line with the company’s goal of having more than 40 percent of its brand mix consist of non-Nike brands by 2026. Dillon highlighted standout brands such as Adidas and New Balance.

“When we think about expanding Secret culture, we realize there are many occasions for sneakers and we can serve those for different people at different times,” Dillon said. “And when we look at the pipeline of innovation that comes with the brands, I’m excited about that too.”

Foot Locker reiterated its outlook for fiscal 2024, expecting sales to decline 1 percent to increase 1 percent. Comparable sales are expected to increase 1 percent to 3 percent and non-GAAP earnings per share are expected to be in the range of $1.50 to $1.70. Foot Locker revised its gross margin outlook downward, now expected to be between 29.5 percent and 29.7 percent, due to promotional pressure in the international business and the WSS banner.