Foot Locker (FL) FL Q2 Financial Results Summary

# Foot Locker, Inc. (FL) Q2 2025 Financial Results Summary

**Release Date:** August 27, 2025

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Foot Locker, Inc. (NYSE: FL) has reported its financial results for the second quarter ending August 2, 2025. Below is a summary of the key metrics and developments:

### Financial Performance Metrics:
– **Total Sales:**
– Decreased by **2.4%** year-over-year, from **$1,896 million** in Q2 2024 to **$1,851 million** in Q2 2025.
– Excluding foreign exchange fluctuations, total sales decreased by **3.7%**.

– **Comparable Sales:**
– Overall comparable sales decreased by **2.0%**.
– North American comparable sales increased by **1.4%**, marking an improvement from earlier quarters.
– Champs Sports saw a positive growth in comparable sales of **2.0%**, which is its fourth consecutive quarter of growth.
– Excluding WSS (a segment with underperformance), North American comparable sales increased by **2.6%**.
– Comparable sales in Europe and Asia Pacific declined by **10.3%**.

– **Gross Margin:**
– Decreased by **50 basis points** compared to the prior year, largely due to a decrease in merchandise margins.

– **SG&A (Selling, General & Administrative) Expenses:**
– Increased as a percentage of sales by **20 basis points** due to sales decline.
– SG&A dollars decreased by **1.7%**, aided by expense discipline and a cost optimization program, despite investments in technology.

– **Income Tax Expense:**
– Reported tax expense of **$8 million**, reflecting a tax rate of **(25.5%)**, mainly due to taxable income in certain jurisdictions.
– Non-GAAP income tax expense was **$11 million**, or **(61.0%)**.

– **Net Loss:**
– Reported net loss of **$38 million**, compared to a loss of **$12 million** in Q2 2024.
– Non-GAAP net loss was **$27 million**, compared to a net loss of **$4 million** in the prior year.

– **Loss per Share:**
– GAAP loss per share was **$0.39** versus a loss of **$0.13** in Q2 2024.
– Non-GAAP loss per share was **$0.27**, compared to a loss of **$0.05** in the same quarter last year.

### Balance Sheet Highlights:
– **Cash and Cash Equivalents:** The company had **$299 million** as of August 2, 2025.
– **Total Debt:** The company’s total debt stands at **$444 million**.
– **Merchandise Inventories:** Increased by **3.7%** year-over-year, totaling **$1,709 million**.

### Store Operations:
– During Q2 2025:
– Opened **2 new stores**.
– Closed **11 stores**.
– Re-modeled or relocated **14 stores** and refreshed **52 stores** to meet updated design standards.
– Foot Locker operates **2,354 stores** across 20 countries, alongside **243 licensed stores** in the Middle East, Europe, and Asia.

### Strategic Initiatives:
– Ongoing store modernization has been a key focus, including the opening of **11 reimagined stores** featuring the first **2 Champs Sports** stores.
– A new version of the **FLX Rewards Program** was successfully launched in Europe.

### Merger Agreement:
– Foot Locker announced the acquisition agreement with DICK’S Sporting Goods on May 15, 2025, which received shareholder approval on August 22, 2025.
– All regulatory approvals have been completed, with the deal expected to close on September 8, 2025.

### Dividends and Share Buybacks:
– The report did not indicate any quarterly dividend declaration or major share repurchase activities, except for the repurchase of **shares of common stock** to satisfy tax withholding obligations totaling **$3 million** in Q2 2025.

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This summary encapsulates the financial outcomes and strategic context for Foot Locker, Inc. for the second quarter of 2025, reflecting both challenges and forward-looking plans as it progresses with its business initiatives.