#USA #New York #DICK'S Sporting Goods #Foot Locker #FL

Foot Locker, Inc. Reports Second Quarter 2025 Financial Results

On August 27, 2025, Foot Locker, Inc. (NYSE: FL) published its financial results for the second quarter ending August 2, 2025. The report indicates a 2.4% decrease in total sales compared to the previous year, totaling $1.851 billion down from $1.896 billion in Q2 2024. Despite this dip, there were encouraging indicators within the North American market, where comparable sales saw a 1.4% increase.

Mary Dillon, the CEO, stated, "During the second quarter, we experienced sequential momentum, particularly highlighted by positive sales from our Foot Locker, Kids Foot Locker, and Champs Sports branches, especially at the start of the Back-to-School season in July. However, we also faced a tough operating landscape and lower store traffic, particularly in our WSS and international markets."

The results reflect the company’s ongoing efforts towards modernization yet highlight challenges, particularly with sales declines in Europe and the Asia Pacific regions, which collectively saw a 10.3% drop in comparable sales.

Financial Overview

• - Total Sales: $1,851 million (down 2.4% YoY)
• - Gross Margin: Reduced by 50 basis points
• - Net Loss: $38 million versus a loss of $12 million the previous year.
• - Loss Per Share: $0.39, up from $0.13 in Q2 2024

The quarter featured continued dedication to store refresh initiatives, with 52 locations refreshed and the opening of 11 reimagined stores including the first two Champs Sports stores. Furthermore, the FLX Rewards Program was successfully launched in Europe, aiming to enhance customer engagement.

Strategic Developments

Significantly, Foot Locker announced that it has received shareholder approval for its acquisition by DICK'S Sporting Goods, with all necessary regulatory approvals also secured. Dillon noted, "We anticipate closing the transaction on September 8, 2025."

Despite current financial losses, the company aims to remain resilient through ongoing investments in technology and improvements in operational efficiency. The adjusted non-GAAP earnings losses reduced to $27 million, marked against $4 million the prior year, with non-GAAP loss per share at $0.27 for Q2 2025.

As of August 2025, Foot Locker operated 2,354 stores across 20 countries. Importantly, the company closed 11 stores, remodeled or relocated 14 and opened 2.

Future Outlook

As the company prepares for the upcoming acquisition, they decided against holding a conference call for this quarter's disclosures, skipping any guidance updates. The focus will remain on stabilizing the business and leveraging the synergies expected from the merger with DICK'S Sporting Goods.

In conclusion, Foot Locker has shown a mixed performance in Q2 2025 but is proactively addressing challenges while gearing up for a significant transformation through the upcoming acquisition. The coming months are crucial for the brand as it aims to realign with current market conditions and customer preferences.