#USA #New York #Foot Locker #NYSE FL #Mary Dillon

Foot Locker Reports Fourth Quarter Results for 2024

Foot Locker, Inc. (NYSE: FL) has released its financial performance for the fourth quarter of 2024, which concluded on February 1, 2025. The results, reflecting a year of challenges, show both positive and negative trends crucial for stakeholders.

Financial Highlights of Q4 2024

The company reported total sales of $2.243 billion, down 5.8% from $2.380 billion recorded in the same period last year. This decrease largely reflects the impact of an extra week of sales in 2023, which alone accounted for $98 million in sales.

Despite the dip in total sales, comparable sales increased by 2.6%, with global Foot Locker and Kids Foot Locker sales rising by 3.6%. Notably, Champs Sports displayed resilience with 1.8% growth.

Mary Dillon, President & CEO, stated, “We achieved fourth-quarter results that exceeded our expectations, driven by strategic investments and improved execution.” This positive trajectory marked the company's return to comparable sales growth, which is a part of its broader Lace Up Plan aimed at enhancing customer experience.

Margins and Earnings Performance

Foot Locker saw an expansion in its gross margin—up 300 basis points year-over-year. The company's focus on cost optimization, disciplined expense management, and technological investments led to improvements in its selling, general and administrative expenses (SGA), which were a fraction of sales compared to the previous year.

With net income from continuing operations hitting $55 million, a stark contrast to the $389 million loss faced in Q4 2023, and earnings per share from continuing operations reported as $0.57, there are promising indicators that the company is rebounding strongly.

Store Base and Strategic Investments

In terms of its retail footprint, Foot Locker made notable shifts, opening seven new stores and refreshing 160 during the quarter. The total number of operational stores as of February 2025 is 2,410 across multiple continents, showcasing Foot Locker's geographical reach and commitment to adapting its store portfolio.

“With plans to continue enhancing our customer-facing investments and managing inventory effectively, we look forward to maintaining profitability,” Dillon added, highlighting the need for ongoing agility in a fluctuating market.

2025 Outlook

Looking ahead, Foot Locker has provided its full-year guidance for 2025, anticipating a sales change between -1.0% and +0.5% while adjusting its expectations for comparable sales growth to 1.0% to 2.5%. The company anticipates low consumer spending and category promotional pressures in the first half of 2025 but remains optimistic in leveraging its strong basketball brand presence and partnerships, exemplified by their recent activation at NBA All-Star 2025.

The gross margin outlook for 2025 is set between 29.3% and 29.7%, with a focus on continual improvement of merchandise margins.

As the retail landscape shifts post-pandemic, Foot Locker's resilience, willingness to innovate, and ongoing commitment to enhancing customer experiences could solidify its market position in the years to come. Investors and stakeholders will eagerly watch how the company navigates these promising yet challenging times.

Conclusion

The fourth quarter of 2024 has undoubtedly highlighted both the potential and challenges facing Foot Locker, Inc. With a robust plan in motion and significant investments earmarked for the year ahead, Foot Locker appears poised to meet its growth expectations through 2025 while remaining committed to delivering shareholder value.