FOOT LOCKER, INC. SEC 10-Q Report

Foot Locker, Inc., a leading global retailer of athletically inspired shoes and apparel, has released its Form 10-Q report for the second quarter of 2025. The report provides a comprehensive overview of the company's financial and operational performance for the thirteen weeks ended August 2, 2025. Despite facing challenges in store sales, the company has shown resilience through strategic initiatives and a shift towards online sales channels.

Financial Highlights

Total Revenue: Foot Locker reported total revenue of $1,857 million for the thirteen weeks ended August 2, 2025, reflecting a decrease of 2.4% compared to the prior-year period. This decline was primarily due to lower store sales.

Gross Margin: The gross margin for the period was 27.1%, down 50 basis points from the prior-year period. This decrease was driven by increased promotional activities and lower vendor allowances.

(Loss) Income from Operations: The company reported a loss from operations of $(26) million, compared to a loss of $(9) million in the prior-year period. This was impacted by lower sales and gross margin.

Net Loss: Foot Locker's net loss for the period was $(38) million, compared to $(12) million in the prior-year period. This was influenced by impairment charges and lower operating income.

Diluted Loss Per Share: The diluted loss per share was $(0.39) for the thirteen weeks ended August 2, 2025, compared to $(0.13) in the prior-year period, reflecting the increased net loss.

Business Highlights

Revenue Segments: The company reported a decrease in store sales by 4.8% for the thirteen weeks ended August 2, 2025, and a 5.6% decrease for the twenty-six weeks ended August 2, 2025. However, direct-to-customer sales increased by 10.6% and 7.2% for the same periods, respectively, indicating a shift towards online sales channels.

Geographical Performance: In North America, constant currency sales increased due to strong product offerings and improved sales conversion, despite a decline in WSS sales. EMEA experienced a decline in sales due to macroeconomic uncertainty and strategic store closures, while Asia Pacific sales were negatively impacted by macroeconomic headwinds and competitive pressures, partially offset by e-commerce growth.

Sales Units: Foot Locker operated 2,354 stores as of August 2, 2025, down from 2,410 stores at February 1, 2025, and 2,464 stores at August 3, 2024. This reflects strategic closures of underperforming locations.

New Product Launches: The company focused on exciting product offerings from strategic brands, particularly in North America, which contributed to sales performance in the region.

Future Outlook: Foot Locker is implementing strategic initiatives to improve profitability, particularly for the WSS banner and European operations. The company is focusing on merchandising, supply chain activities, and cost optimization. Additionally, Foot Locker plans to open approximately 70 'Reimagined' Foot Locker and Kids Foot Locker stores, primarily through conversions or relocations of existing stores.

SEC Filing: FOOT LOCKER, INC. [ FL ] - 10-Q - Sep. 02, 2025