The Ratings Game: Foot Locker cuts staff and another exec departs: ‘Every executive from the 2019 analyst day is now gone,’ analyst says

by | Jan 26, 2023 | Stock Market

Athletic-gear retailer Foot Locker Inc. on Thursday said it was cutting some of its corporate and support staff and has decided to wind down its Sidestep athletic fashion brand in Europe. The retailer also said that Andrew Gray, executive vice president of Global Lockers and Champs Sports, left the company on Jan. 23, marking the latest executive departure over the past several years.

Champs Sports operates under Foot Locker’s umbrella. Sidestep runs several dozen stores throughout a handful of nations in Europe, where a spike in energy prices has created a cost-of-living crisis for many. Foot Locker
disclosed the moves in a filing, amid falling sales for the company following a big jump in 2021, when the economy’s reopening and pandemic-related stimulus helped boost consumer spending. The company did not say how many people would lose their jobs. The cuts, it said, were geared toward “streamlining the organization and enhancing operational efficiency.” Foot Locker said it expected the staff eliminations to save around $18 million starting in fiscal 2023. The company had 16,555 full-time employees and 33,378 part-timers as of Jan. 29, 2022. Foot Locker was not immediately available for comment. Shares jumped 6.4% on Thursday, finishing at their highest level since last February. Wedbush analyst Tom Nikic, in a note on Thursday, said the cuts and the decision to wind down Sidestep were a sign of new Chief Executive Mary Dillon “putting her stamp on the biz.” “New CEO Mary Dillon has been very active …

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