What caused FL's earnings to miss forecasts in Q3 2025?

Foot Locker's (FL) earnings missed forecasts in Q3 2025 due to a combination of factors: 1. **Nike's Inventory Clearance Efforts**: Nike's (NKE) ongoing inventory clearance efforts resulted in higher markdowns, which likely impacted Foot Locker's margins and profitability. This is because Foot Locker, being a key partner of Nike, was likely affected by the discounts and promotions initiated by Nike to clear its inventory. 2. **Soft Consumer Demand and Elevated Promotions**: The athletic apparel industry, including Foot Locker, has been facing soft consumer demand and increased promotions. This trend has been challenging for Foot Locker, leading to a decline in its earnings and revenues. The company's existing locations and e-commerce sales have been impacted, indicating a need for management to adjust their strategic footprint. 3. **Performance of Existing Locations and E-commerce Sales**: The performance of Foot Locker's existing locations and e-commerce sales is critical in determining whether to expand or downsize physical footprints. The company's same-store sales figures provide insights into the organic growth at brick-and-mortar shops, which is essential for understanding the overall financial health of the business. In summary, Foot Locker's Q3 2025 earnings miss can be attributed to a combination of Nike's inventory clearance efforts, soft consumer demand, elevated promotions, and the performance of existing locations and e-commerce sales. These factors collectively contributed to the company's challenging financial results.