Foot Locker, Inc. Reports Q1 Losses

By Hao Liu • Thursday, May 15 10:13 • Permanent Link

Foot Locker, Inc. has reported its preliminary financial results for the first quarter ended May 3, 2025. The company's CEO, Mary Dillon, mentioned that despite making progress with the lace-up plan, the preliminary first quarter results fell below expectations due to softer traffic trends globally. Here are the key financial highlights:

Comparable sales decreased by 2.6% from the prior-year period, with comparable sales in the North America region decreasing by 0.5%.
Net loss is expected to be $363 million, compared to net income of $8 million in the corresponding prior-year period. On a non-GAAP basis, net loss is expected to be $6 million for the first quarter, compared to net income of $21 million in the corresponding prior-year period.
First-quarter loss per share is expected to be $3.81, compared to earnings per share of $0.09 in the first quarter of 2024. Non-GAAP loss is expected to be $0.07 per share in the first quarter, compared to non-GAAP earnings per share of $0.22 in the corresponding prior-year period.
Non-GAAP net loss and net loss per share exclude non-cash impairment charges totaling $276 million and primarily reflect a $140 million charge related to a tradename and a goodwill impairment charge of $110 million. Additionally, the company recorded a full valuation allowance on the company’s deferred tax assets and deferred tax costs related to the company’s European business totaling $124 million, which is excluded from non-GAAP results.

In a separate press release, Foot Locker and Dick’s Sporting Goods announced that they have entered into a definitive merger agreement under which Dick’s will acquire Foot Locker in a transaction that implies an equity value of approximately $2.4 billion and an enterprise value of approximately $2.5 billion.

It's important to note that Foot Locker plans to report full financial results for its first quarter ended May 3, 2025, before the U.S. markets open on Thursday, May 29, 2025. However, in light of the pending transaction with Dick’s, Foot Locker will not be holding its previously scheduled conference call to discuss its first quarter 2025 results and will not be providing or updating previously issued financial guidance. As a result of these announcements, the company's shares have moved -3.31% on the market, and are now trading at a price of $12.87. Check out the company's full 8-K submission here.

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