| Imagery Source: Wikimedia Commons / Raysonho |
| Information Source: Foot Locker, Inc |
- Total Sales Down 2.4% Year-over-Year and Comparable Sales Down 2.0%
- North American Comparable Sales Increase of 1.4%
- GAAP EPS Loss of $0.39 and Non-GAAP EPS Loss of $0.27
- Continued Store Modernisation Efforts with 52 Refreshes
- Opened 11 Reimagined Stores, including the First 2 Champs Sports Stores
- Successfully Launched Enhanced FLX Rewards Program in Europe
|
| Foot Locker, Inc. (NYSE: FL) today reported financial results for its second quarter ended August 2, 2025. |
| Mary Dillon, Chief Executive Officer, said, "In the second quarter, we built sequential momentum and delivered positive North American comparable sales results led by our Foot Locker, Kids Foot Locker, and Champs Sports banners, including a positive start to the Back-to-School season in July. At the same time, our results reflect a challenging operating environment and soft store traffic trends, particularly in our WSS and international businesses. Our team continued to execute our Lace Up Plan, remaining focused on elevating our customers' experiences by leveraging our strong brand partnerships, enhancing our store base through our Refresh and Reimagined programs, improving our digital platforms, and deepening global engagement through our FLX Rewards Program." |
| Ms Dillon added, "We are pleased to have recently received shareholder approval for the Company's acquisition by DICK'S Sporting Goods. All required regulatory approvals have been received, and we look forward to the successful completion of the transaction." |
| Second Quarter Results |
- Total sales were down 2.4%, to $1,851 million, as compared with sales of $1,896 million in the second quarter of 2024. Excluding the effect of foreign exchange rate fluctuations, total sales for the second quarter decreased by 3.7%.
|
- Comparable sales decreased by 2.0%, with comparable sales in North America generating a comparable increase of 1.4%, which represented an improvement relative to the first quarter. Additionally, this period represented the fourth consecutive quarter of positive comparable sales growth at our Champs Sports banner, generating a comparable increase of 2.0%. Excluding WSS, comparable sales in North America increased by 2.6%. These gains were partially offset by comparable sales declines from our European and Asia Pacific businesses, which decreased by 10.3%.
Please refer to the Sales by Banner table below for detailed sales performance by banner and region.
|
- Gross margin decreased by 50 basis points as compared with the prior-year period. Merchandise margins decreased by 50 basis points, while occupancy as a percentage of sales was flat compared to the prior-year period.
|
- SG&A as a percentage of sales increased by 20 basis points as compared with the prior-year period, primarily due to underlying deleverage on the sales decline. Compared to the prior year, SG&A dollars decreased by 1.7%, reflecting benefits from ongoing expense discipline, including our cost optimisation program, partially offset by our investments in technology.
|
- Despite a pre-tax loss in the quarter, the Company recorded income tax expense of $8 million, or (25.5)%, primarily driven by taxable income in certain jurisdictions and the lack of a tax benefit on losses in the Netherlands. This is a result of the Company's first quarter decision to fully value the related deferred tax assets on net operating losses. On a non-GAAP basis, income tax expense was $11 million, or (61.0)%.
|
- Net loss was $38 million, as compared with net loss of $12 million in the prior-year period. On a non-GAAP basis, net loss was $27 million for the second quarter, as compared with net loss of $4 million in the corresponding prior-year period.
|
- Second quarter loss per share was $0.39, as compared with loss per share of $0.13 in the second quarter of 2024. Non-GAAP loss was $0.27 per share in the second quarter, as compared with non-GAAP loss per share of $0.05 in the corresponding prior-year period.
|
| Balance Sheet |
| At quarter-end, the Company had cash and cash equivalents of $299 million, and total debt was $444 million. |
| As of August 2, 2025, the Company's merchandise inventories were $1,709 million, 3.7% higher than at the end of the second quarter last year due largely to a strategic pull-forward of fall product and a 100 basis point change related to foreign exchange currency fluctuations. Excluding the effect of foreign currency fluctuations, merchandise inventories increased by 2.7% as compared with the second quarter of last year. |
| Store Base Update |
| During the second quarter, the Company opened 2 new stores and closed 11 stores. Also during the quarter, the Company remodelled or relocated 14 stores and refreshed 52 stores to our updated design standards, which incorporate key elements of our current brand design specifications. |
| As of August 2, 2025, the Company operated 2,354 stores in 20 countries in North America, Europe, Asia, Australia, and New Zealand. In addition, 243 licensed stores were operating in the Middle East, Europe, and Asia. |
| Agreement to be Acquired by DICK'S |
| As previously announced on May 15, 2025, Foot Locker, Inc. and DICK'S Sporting Goods entered into a definitive merger agreement under which DICK'S will acquire the Company. On August 22, 2025, Foot Locker, Inc. received shareholder approval for the acquisition. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, expired at 11:59 p.m. Eastern time on August 25, 2025, and all required regulatory approvals to complete the transaction have been received. The Company expects the transaction will close on September 8, 2025. |
| In light of the pending transaction with DICK'S, Foot Locker, Inc. will not be holding a conference call to discuss its second quarter 2025 results and will not be providing, or updating previously issued, financial guidance. |
| For the full document, click the link below |
| Foot Locker, Inc |
| Stay ahead of the curve! Subscribe to InsidEntity for daily updates on all your favourite companies. |
