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Could Footwear Retailers’ Margins Improve in 2018?

Victoria Dean
Could Footwear Retailers’ Margins Improve in 2018?

In fiscal 2017 (ended February 3, 2018), Foot Locker’s (FL) gross margin contracted by 230 basis points to 31.6%, mainly due to a narrower merchandise margin. The rise in SG&A and litigation expenses led to a 42.9% decline in operating income to $571 million. Foot Locker had an operating margin of 7.3%, compared with 12.9% in fiscal 2016.