What strategies can FL adopt to improve future earnings?

Foot Locker can adopt several strategies to improve future earnings: 1. **Leverage Store Refresh and Reimagined Stores**: Foot Locker has been refreshing and reimagining its stores to enhance the customer experience and support brand storytelling. Continuing this program can attract customers and increase sales. 2. **Focus on Digital and Mobile Capabilities**: Enhancing digital and mobile capabilities can improve the customer experience and increase sales. Foot Locker's FLX Rewards Program and digital engagement show a positive trend. 3. **Manage Inventory and Expense Base**: Controlling inventory and managing the expense base can improve profitability. Foot Locker's disciplined approach to inventory and expenses can positively impact earnings. 4. **Brand Building and Partnerships**: Foot Locker's brand-building campaigns and partnerships, such as its basketball activations, can enhance brand loyalty and sales. Strengthening these efforts can drive future earnings. 5. **Market Expansion and New Store Openings**: Foot Locker plans to open or convert 80 reimagined stores by the end of 2025, which can increase its footprint and sales. 6. **Gross Margin Expansion**: Foot Locker has seen a gross margin expansion of 300 basis points year-over-year, which can positively impact earnings if maintained. 7. **Leverage Loyalty Programs**: Foot Locker's FLX Rewards Program has shown growth, which can lead to increased customer retention and sales. 8. **Manage Promotional Pressure**: Foot Locker expects promotional pressures to remain uncertain, but managing these pressures effectively can maintain profitability. By focusing on these strategies, Foot Locker can improve its future earnings and maintain its market position.